New orders surpass $60 billion, backlog orders hit record high, Super Micro Computer (SMCI.US) soars 18% after hours

Odaily Finance APP noted that in after-hours trading, shares of artificial intelligence (AI) server manufacturer Super Micro Computer (SMCI.US) surged over 18%. Previously, preliminary results released by the company showed that its backlog orders hit a record high, with new orders for the quarter exceeding $60 billion.

Sales of servers equipped with Nvidia chips for AI workloads have skyrocketed at Super Micro Computer. However, in the rapidly growing AI market, the company has been striving to control costs while competing with rivals to quickly deliver these machines to customers and win business.

In a statement on Tuesday, the company said that gross margin for the fiscal quarter ended June 30 is expected to be between 15% and 17%. This better-than-expected performance indicates the company is making progress in selling high-margin products.

Super Micro Computer stated that fourth-quarter revenue will be at the low end of the previously provided guidance range of $11 billion to $12.5 billion. The average analyst expectation is $11.8 billion.

As of Tuesday’s close, the stock had fallen 13% for the year, including a single-day plunge of 28% last month after Super Micro Computer announced plans to raise $7 billion through an equity financing package.

The company said on Tuesday that these new orders "are expected to be delivered in the coming quarters," which is a positive signal for future revenue and also indicates Super Micro Computer is winning more contracts.

The company is scheduled to release its full quarterly results on August 11.