Super Micro books $60bn in orders, doubles margin forecast

Super Micro Computer secured more than $60 billion in new orders during its fourth quarter, sending its shares surging 17.5 per cent in extended trading. The AI server maker also signaled a dramatic improvement in profitability, expecting gross margins to roughly double its previous guidance.

For the quarter ended June 30, Super Micro now anticipates gross margins between 15 per cent and 17 per cent. This sharply revises its earlier outlook of 8.2 per cent to 8.4 per cent. The company attributed the expansion "primarily due to a favorable customer and product mix," suggesting a lucrative shift toward high-end AI hardware over traditional server lines.

While profitability is tracking well ahead of expectations, top-line growth appears more measured. Revenue for the period is expected to land near the low end of the company's $11 billion to $12.5 billion forecast range. Analysts polled by LSEG had projected $11.67 billion.

The divergence between soaring orders and lower-end revenue guidance highlights the massive scale of the company's incoming pipeline, much of which will convert to sales in future periods. Super Micro noted its backlog grew to "record levels" by the end of fiscal year 2026. This order volume reflects the broader infrastructure buildout driven by cloud providers and tech companies deploying large language models.

Converting this record backlog into delivered hardware requires significant manufacturing capacity. In June, Super Micro outlined plans to raise $7 billion through equity and equity-linked financing. Those funds are earmarked to fulfill roughly $39 billion in advanced AI server orders from more than 20 customers.

Investors will look for further details on execution timelines and supply chain constraints when the company posts its full quarterly results on August 11. Until then, the updated margin guidance suggests Super Micro is successfully capturing higher value as it scales up production for the AI era.