Super Micro stock soars after upbeat revenue forecast shows robust AI demand

Super Micro Computer (SMCI) raised its fiscal first-quarter revenue guidance to $18.5B-$19.5B, up from $14.5B-$15.5B, citing strong AI demand. Gross margin estimates also increased to 12.0%-12.5%. The stock rose 15.54% after hours. The company noted preliminary, unaudited estimates and potential material differences in actual results. Analysts expected lower revenue and margins.

Rosenblatt reiterated a Buy rating on Super Micro Computer (SMCI) with a $57 price target, suggesting a 75.5% upside from the Oct 20 close. The company's 1QFY27 revenue guidance of $18.5B-$19.5B indicates a 280% YoY growth, driven by AI demand. Diversification and expansion into larger customers are also noted.

Rosenblatt raised its price target on Super Micro Computer (SMCI) to $57 from $51, maintaining a Buy rating after the company's Q1 revenue preannouncement. SMCI expects Q1 revenue of $18.5B-$19.5B, up 280% YoY, with improved gross margins. Rosenblatt also increased its fiscal 2027 revenue and EPS estimates. The stock is undervalued per InvestingPro, with a P/E of 10.05 and PEG of 0.1. Export-control investigations are ongoing, but management was cleared of allegations.

Dell Technologies (DELL) stock rose 5.51% in premarket trading on October 21, following Super Micro Computer's (SMCI) raised sales and gross margin forecast due to strong AI server demand. SMCI's updated revenue forecast ranges from $18.5B to $19.5B, higher than previous estimates. Dell, also a supplier of AI servers, has seen strong demand, with $60.9B in AI orders in Q2 fiscal 2027. Barclays downgraded Dell to Equalweight but maintains a positive outlook on its AI server business.

Needham reiterated a Buy rating and $46.00 price target on Super Micro Computer (SMCI) after its preliminary Q1 FY2027 results showed revenue of $19.0B, exceeding prior guidance of $15.0B due to AI demand. Gross margins are expected to improve to 12.0%-12.5%. Bernstein raised its target to $42. SMCI is partnering with NVIDIA and Cisco, and Rosenblatt cited strong AI order momentum.

Nasdaq futures rose as SpaceX and Super Micro Computer reported strong earnings, boosting AI-related stocks. SpaceX gained 7.2% after reporting its first profit and discussing a potential merger with Tesla. Super Micro jumped 10.9% on strong revenue forecasts. Netflix fell 6.6% after a weak profit forecast. Other tech and space stocks also saw gains. Oil prices remained high, and Fed rate hike expectations persist.