NEW YORK, July 22, 2026, 08:59 EDT
- Super Micro Computer NASDAQ:SMCI rose 12.6% to $28.70, according to delayed premarket data.
- At the midpoint of its preliminary margin, the company expects gross profit of $1.76 billion from $11 billion in sales.
- Alphabet NASDAQ:GOOGL traded unchanged around $347.67 ahead of earnings. Nasdaq 100 futures dropped 0.6% in early premarket activity.
Shares of Super Micro climbed 12.6% to $28.70 during extended premarket trading. The U.S. cash market was set to open at 9:30 a.m. EDT.
The action followed a decline in chip stocks. This difference highlights a more specific investor focus: gross-profit conversion.
The company anticipates preliminary fourth-quarter revenue to be approximately $11 billion. It increased its projected gross margin to a range of 15%-17%, up from the previous 8.2%-8.4%.
The updated midpoint of $11 billion in sales suggests a gross profit of $1.76 billion. This marks an increase of $847 million, or 93%, over the previous midpoint.
| Measure | Previous reference | Current or preliminary | Change |
|---|---|---|---|
| SMCI share price | $25.50 close | $28.70 premarket | +12.6% |
| Gross margin | 8.2%-8.4% guidance | 15%-17% estimate | +6.6 to +8.8 points |
| Gross profit at $11 billion sales | $0.91 billion midpoint | $1.76 billion midpoint | +$0.85 billion, or 93% |
Stock prices reflect delayed data. Financial results are preliminary and have not been audited. Gross profit is calculated using the midpoint of margins and the lower end of sales forecasts.
Super Micro disclosed over $60 billion in new orders for the quarter, which is over 5.4 times its minimum sales figure. However, a portion of these orders may not be committed and could be subject to cancellation or postponement.
Activity among peers helped reinforce the margin-over-volume measure. Shares of Hewlett Packard Enterprise NYSE:HPE rose 1.1%, as Nvidia NASDAQ:NVDA dropped 1.2%. Advanced Micro Devices NASDAQ:AMD declined 2.1%.
The iShares Semiconductor ETF NASDAQ:SOXX dropped 1.8% earlier. Nasdaq 100 futures lost 0.6% as of 7:02 a.m. EDT.
Alphabet will release its results after markets close on Wednesday. The stock held steady at $347.67 in premarket trading. Investors are looking for proof that significant spending on AI translates into solid returns.
A reduction in spending by Big Tech could trigger “another wave of selling” in the semiconductor sector, according to senior analyst Ipek Ozkardeskaya. Reuters
Analysts at JPMorgan Chase NYSE:JPM indicated that the margin increase may drive quarterly earnings per share to at least 80% higher than present forecasts. They raised doubts about the sustainability of the elevated margin.
Risks: This update is still unaudited and provisional. Super Micro continues to assess potential export-control matters, and its order backlog features commitments that could face postponement or cancellation.
The final results will be released on August 11. In the meantime, the task remains straightforward: convert backlog into consistent gross profit.
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