Super Micro Computer raised its first-quarter revenue forecast to $18.5 billion to $19.5 billion on 20 October, from its previous range of $14.5 billion to $15.5 billion, Reuters reported. The server maker’s revised outlook is above the $15.23 billion average analyst estimate compiled by LSEG.
Key points
- Super Micro expects first-quarter revenue of $18.5 billion to $19.5 billion, above its previous forecast and the $15.23 billion analyst average.
- Its gross margin forecast rose to 12% to 12.5% from 10.4% to 10.8%.
- Super Micro shares gained 11.3% in after-hours trading; rivals Dell and HPE also rose.
Super Micro lifts both forecast ranges
The 20 October announcement set a higher revenue range at both ends. Super Micro’s previous forecast ran from $14.5 billion to $15.5 billion. Its new lower end is $18.5 billion, while the upper end is $19.5 billion. Analysts’ average estimate of $15.23 billion sat within the company’s previous range and below its revised one.
Super Micro also expects a first-quarter gross margin of 12% to 12.5%, compared with its earlier expectation of 10.4% to 10.8%. Analysts had estimated 10.15%. Reuters attributed the higher margin outlook primarily to the mix of customers and products.
The margin revision accompanies the revenue increase. Both forecast ranges now exceed the estimates cited in the report, though they address different parts of the company’s results: sales and the proportion remaining after direct costs.
Dell and HPE shares gain after Super Micro
Super Micro shares rose 11.3% in after-hours trading following the announcement. Shares in rival server suppliers Dell and HPE gained between 3.5% and 4.9%, while Nvidia was up 1.5%, Reuters reported.
The gains in Dell and HPE put the market reaction beyond the company issuing the forecast. AI Affairs has separately reported an 11% fall in Dell shares after Barclays downgraded three data-centre suppliers.
Four cloud companies’ 2026 AI spending forecast
Demand for AI data-centre equipment is benefiting server makers such as Super Micro. Reuters reported that Microsoft, Google and Amazon are among the four leading cloud-computing companies forecast to spend more than $700 billion on AI infrastructure in 2026.
