Super Micro Computer Surges 25% on Raised Gross Margin Outlook

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Super Micro Computer (SMCI.O) shares surged 25% on Wednesday after raising its fourth-quarter gross margin forecast to 15%-17%, up from 8.2%-8.4%. JPMorgan analysts said the margin expansion could increase earnings per share by over 80% compared to estimates. On-chain data shows strong buying pressure, while the company reported securing over $600 billion in new orders, surpassing expectations. On-chain analysis suggests the rally is fueled by both institutional and retail inflows. Competitors Dell and Hewlett Packard Enterprise also rose amid the surge in demand.
ME AI News: On Wednesday, Super Micro Computer (SMCI.O) shares surged 25% after the AI server company forecasted a gross margin of 15% to 17% for its fourth fiscal quarter—nearly double its previous target of 8.2% to 8.4%. J.P. Morgan analysts said this unexpected gross margin expansion suggests Super Micro’s fourth-quarter earnings per share could be at least 80% higher than current Wall Street expectations. However, investors may question the sustainability of such high margins in the coming weeks. J.P. Morgan analysts noted that the company secured over $60 billion in new orders this quarter, exceeding its own projections—a strong sign of demand that also benefits competitors Dell and HPE, whose shares rose accordingly. (Jinshi) (Source: MLion)
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