Super Micro climbs after upbeat forecast shows robust AI demand (updated)

Hewlett Packard Enterprise

21/10/2026 11:44

Update shares at market open
Oct 21 (Reuters) - Super Micro Computer SMCI.O jumped more than 11% on Wednesday after it forecast quarterly revenue and profit margin comfortably above Wall Street estimates, signaling that AI data center demand remains resilient. 
Shares of the AI server maker rose 11.6% to $36.25, hitting a one-week high.
Here are more details: 
Super Micro forecast first-quarter revenue between $18.5 billion and $19.5 billion, above analysts' expectations of $15.23 billion, according to data compiled by LSEG
It now expects profit margins in the range of 12% to 12.5% versus earlier expectations of between 10.4% and 10.8%
The ongoing scramble to build data centers has largely benefited semiconductor and AI server makers, including Super Micro
Microsoft, Google, Amazon and Meta are expected to spend more than $700 billion on AI infrastructure this year
Other server makers Dell DELL.N and Hewlett Packard Enterprise HPE.N also gained 5.1% and 3.2%, respectively 
"Investors are likely to focus on whether strong performance in core businesses can continue to support elevated AI investment," said strategists at UBS Global Wealth Management
The brokerage added that commentary from AI giants on spending, margins and returns will be scrutinized to determine whether the AI capex cycle can be justified 
Markets have lately been concerned about the profitability of data center operators, which have been issuing debt to fund their buildout at a time when borrowing costs are rising
CoreWeave CRWV.O, a heavily indebted data center operator, was at the center of a selloff last week that also rattled AI-linked stocks

 (Reporting by Purvi Agarwal and Avinash P in Bengaluru; Editing by Leroy Leo)
 ((Purvi.Agarwal@thomsonreuters.com;))