TLDR
- SMCI stock jumped ~15% in premarket trading on Wednesday
- Gross margin guidance nearly doubled to 15%–17%, up from prior guidance of 8.2%–8.4%
- Order backlog hit an all-time high, with over $60 billion in new orders received in Q4 fiscal 2026
- Revenue is projected near the low end of the $11.0B–$12.5B guidance range
- Full Q4 earnings are scheduled for August 11
Super Micro Computer (SMCI) stock surged roughly 15% in premarket trading on Wednesday, reaching $29.51, after the company filed a preliminary Q4 fiscal 2026 business update with the SEC following Tuesday’s close.
Super Micro Computer, Inc., SMCI
The headline number that moved markets: gross margins. SMCI now expects GAAP and non-GAAP gross margins to land between 15% and 17% for the quarter ended June 30, 2026. That’s nearly double the prior guidance of 8.2% to 8.4%. The company attributed the jump to a favorable customer and product mix.
That margin revision alone would have been enough to get Wall Street’s attention. But there was more.
Record Backlog of $60 Billion
SMCI also disclosed that its order backlog climbed to an all-time high at the end of fiscal 2026. The company received more than $60 billion in total new orders during Q4 alone — orders it expects to fulfill in the coming quarters.
That backlog figure signals strong demand for the company’s AI server products, which incorporate chips from Nvidia (NVDA), Intel (INTC), and AMD (AMD).
Revenue for the quarter is expected to come in near the low end of the $11.0 billion to $12.5 billion guidance range. Investors appeared willing to look past the softer top-line number, focusing instead on the margin improvement and the sheer scale of the backlog.
The move in SMCI was entirely company-specific. The broader market offered no help — the S&P 500 was down 0.4%, the Dow off 0.1%, and the Nasdaq lower by 0.9% on Wednesday.
Context: A Stock With a Bumpy Ride
SMCI’s run-up comes after a rough stretch. The stock is down nearly 13% year to date, following a drop in June after the company announced an equity raise to buy components needed to fulfill $39 billion in AI server orders.
Wednesday’s premarket price of $29.51 also puts the stock well above its 52-week low of $19.48, but still far below its 52-week high of $62.36.
Last month, CEO Charles Liang revealed the company is co-building “another new Gigawatt AI datacenter for SpaceX and xAI within a year,” a disclosure that added to the demand narrative around the company.
Full Q4 results are set to be presented on an earnings call on August 11.
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