Super Micro Computer surged 12.3% in pre-market trading on Wednesday, October 21, hitting $36.46, after the server maker released preliminary first-quarter fiscal 2027 results on October 20 that far exceeded expectations, driven by relentless demand for AI data centres.
The company forecast first-quarter revenue of $18.5 billion to $19.5 billion, well above analysts’ expectations of $15.23 billion, according to data compiled by LSEG. It also expects profit margins to range between 12% and 12.5%, compared with earlier expectations of 10.4% to 10.8%.
Super Micro has benefited from surging demand for equipment used to train and run AI workloads. Its servers are equipped with Nvidia Corp. chips, which have become the preferred components for a large share of AI data centres.
Microsoft, Google, Amazon and Meta are expected to spend more than $700 billion on AI infrastructure this year, underscoring the scale of investment in the sector. Other server makers, Dell and Hewlett Packard Enterprise, also gained 5.2% and 4%, respectively, before the bell.
“Investors are likely to focus on whether strong performance in core businesses can continue to support elevated AI investment,” strategists at UBS Global Wealth Management said. The brokerage added that commentary from AI giants on spending, margins and returns would be closely scrutinised to determine whether the AI capital expenditure cycle can be justified, Reuters reported.