Super Micro Raises Revenue and Margin Guidance, Lifting Dell and HPE Premarket Shares
Super Micro's significant upward revision of quarterly revenue and gross margin forecasts signals strong AI server demand, driving gains for peers Dell and HPE.
US server manufacturer Super Micro Computer issued a preliminary financial outlook, raising its revenue forecast for the quarter ended September 30 to $18.5 billion–$19.5 billion from the previous guidance of $14.5 billion–$15.5 billion. It also increased its gross margin projection to 12%–12.5% from 10.4%–10.8%. This robust update is viewed as a positive signal for artificial intelligence infrastructure demand.
In response, shares of major AI hardware suppliers Dell Technologies and Hewlett Packard Enterprise rose nearly 5% and 4% respectively in Wednesday premarket trading, while Super Micro's own stock surged more than 12%. Evercore ISI analyst Amit Daryanani noted that Super Micro's margin improvement was "an impressive feat" and suggested it bodes well for Dell and HPE, citing the notable combination of revenue upside and better-than-expected margins.
Despite the boosted sentiment, investors remain skeptical about the sustainability of enterprise AI spending. Barclays downgraded ratings on Dell, HPE, and NetApp last week, citing no "meaningful AI inflection" in enterprise spending and attributing recent revenue strength to higher memory costs rather than accelerated AI adoption. Super Micro is scheduled to report official earnings on November 3, which will provide more details on demand sources.