News about servers

Super Micro Computer (SMCI) stock rose 12% to $36.45 in morning trading after the AI server maker issued a preliminary update for its fiscal first quarter of 2027, which ended in September. It estimates revenue of at least $18.5 billion, above the top of its prior guidance range, on stronger demand for AI platforms, and also expects gross margins above its prior guidance range due to customer and product mix. Dell rose 7% to $494.24 and Hewlett Packard Enterprise gained 5% to $58.84, while the Invesco QQQ Trust was up only 0.6%, suggesting buyers are targeting AI hardware. Because its margins are thin, Super Micro's revenue depends heavily on large customer orders, and the figures remain unaudited until the full results and conference call in early November.

Supermicro (SMCI) shares jumped 12% in early trading on Wednesday, while Dell (DELL) and Hewlett Packard Enterprise (HPE) gained 5% and 4%. The AI server maker raised its fiscal first quarter revenue forecast by $4 billion to $18.5–19.5 billion for the quarter ended Sept. 30, from $14.5–15.5 billion, signaling stronger demand for AI infrastructure. It also lifted its gross margin forecast to 12%–12.5% from 10.4%–10.8%, citing a more favorable customer and product mix. The company will present full fiscal Q1 2027 results on Nov. 3, and shares are up about 10% year to date.