Super Micro Computer Inc. (NASDAQ: SMCI) shares surged 20.58% in after-hours trading on Wednesday, reaching $30.75, following the announcement of a record backlog exceeding $60 billion in new orders. This significant increase follows a 7.01% rise during regular trading hours, where the stock closed at $25.50 after hitting an intraday high of $25.54 and a low of $24.33.
Key Details
The company reported that it expects gross margins to improve significantly, now projected between 15% and 17%, up from previous guidance of 8.2% to 8.4%. This growth in margins is attributed to a favorable customer and product mix, as stated by the company. Super Micro anticipates that revenue for the fourth quarter will be at the lower end of its prior guidance, estimated between $11 billion and $12.5 billion. The company is scheduled to report its fourth-quarter earnings on August 11.
Background
Other notable stocks included Rocket Lab, which rose 5.14% to close at $69.12, boosted by a $266 million contract from the U.S. Space Force for suborbital launches. Dell Technologies also saw a gain of 6.01%, closing at $404.15, as investor confidence grew following Super Micro's strong performance. Capital One's stock declined slightly by 0.27%, despite reporting strong quarterly earnings.
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The surge in Super Micro's stock is likely to influence technology sector indices, particularly those focused on hardware and computing. Investors may reassess their positions in related stocks based on Super Micro's order growth and margin improvement.
Watch for Super Micro's upcoming earnings report on August 11, which could provide further insights into its financial performance and market strategy.