Super Micro Computer shares surged about 13% in premarket trading on Wednesday after the artificial intelligence server maker sharply raised its fiscal first-quarter revenue outlook, a move that also lifted rival hardware stocks. The stock had closed Tuesday at $32.47, according to market data.
The company, which trades on Nasdaq under the ticker SMCI, said late Tuesday it now expects revenue of $18.5 billion to $19.5 billion for the quarter ended September 30. Its earlier forecast was $14.5 billion to $15.5 billion, meaning the midpoint of the new range sits roughly 27% above the old one and well ahead of the analyst consensus of about $14.99 billion.
Revenue outlook raised by billions
Super Micro cited stronger demand for AI servers for the upgrade. Gross margin guidance also moved higher, to 12.0% to 12.5% from 10.4% to 10.8%, a notable improvement for a business that has long operated on thin margins. The figures are preliminary, with full quarterly results due on November 3.
The announcement rippled across the sector. Dell shares gained about 5.3% and Hewlett Packard Enterprise rose 4.5% in after-hours trading, while chip stocks added roughly 2%, according to market reports.
A discount that refuses to close
Despite the blockbuster outlook, Super Micro continues to trade at a steep discount to peers. Analysts note the stock changes hands at roughly 7.3 times forward earnings, compared with about 17.4 times for Dell and 14.4 times for Hewlett Packard Enterprise, even though the company has secured more than $60 billion in server orders and reported fiscal 2026 sales of $39.1 billion, up from $22 billion a year earlier.
Investor caution stems partly from governance concerns. A contractor linked to the company pleaded guilty in October to shipping advanced Nvidia AI chips to China, and the company has said it is not a defendant in the matter. The board appointed veteran finance executive Mark Long as chief financial officer on October 15 in a bid to strengthen financial controls.
What comes next
Wall Street remains divided. The stock carries a consensus “Hold” rating from 18 analysts, with an average price target of $43.07. Rosenblatt Securities reiterated a Buy rating with a $51 target on October 16, calling the shares “still undervalued,” while Bank of America has kept an underperform rating.
For now, the raised outlook has given the shares their strongest single-day lift in months, as investors bet that AI infrastructure demand can overpower the governance discount.
