Super Micro Computer reported a notable increase in its projected gross margins for the June quarter, now expected to be between 15% and 17%, up from the previous estimate of 8.2% to 8.4%. This revision is attributed to a favorable mix of customers and products, particularly driven by rising demand for servers equipped with Nvidia graphics processing units for artificial intelligence applications.
The company also indicated that its revenue for the quarter would likely fall at the lower end of its guidance range of $11.0 billion to $12.5 billion, with analysts anticipating $11.67 billion. Super Micro's backlog reached record levels, with over $60 billion in new orders received in the fiscal fourth quarter, which ended June 30.
This surge in orders is expected to be fulfilled in upcoming quarters. The positive news also impacted competitors, with Dell's stock rising 5% and Hewlett Packard Enterprise gaining 4% in after-hours trading. Super Micro plans to discuss its earnings further in a call scheduled for August 11