Super Micro Raises September Quarter Revenue Outlook

Super Micro Computer raised its preliminary revenue outlook for the quarter ended September 30 to $18.5 billion to $19.5 billion, up from its previous forecast of $14.5 billion to $15.5 billion, citing stronger demand for AI platforms. Its projected gross margin also increased, and the announcement lifted shares of the company and other technology hardware makers in trading on October 20 and 21. The new revenue range has a midpoint of $19 billion, 26.7% above the earlier $15 billion midpoint. The company’s prior-year sales for the comparable quarter were about $5.02 billion. Super Micro’s projected gross margin is now 12% to 12.5%, compared with its earlier estimate of 10.4% to 10.8%. The company attributed the improved margin outlook to customer and product mix. Even with the increase, the projected range remains below the 17.5% gross margin reported for the quarter ended June 30. The update did not include an estimate for net income or earnings per share. Super Micro shares rose sharply in extended and premarket trading after the announcement. Dell Technologies and Hewlett Packard Enterprise also gained, with reported moves varying by trading session and observation time....