Super Micro Computer Inc

Cisco Systems has broken its biggest hardware rule by selling AI server hardware directly through a new partnership with Super Micro Computer, pulling the company deeper into a business it traditionally left to others. Announced Tuesday, Cisco is expanding its Secure AI Factory with Nvidia architecture to include Supermicro's liquid and air cooled server systems, which will be sold and validated as part of Cisco's own AI infrastructure portfolio. The combined stack becomes compliant with Nvidia's Cloud Partner program, a credential neoclouds and sovereign cloud operators look for before signing large contracts. Cisco President and Chief Product Officer Jeetu Patel said the industry is at the state of "one of the largest datacenter buildouts in history." Cisco shares rose roughly 1% Tuesday, while Supermicro jumped about 9%. Twenty-six analysts polled by S&P Global rate Cisco a consensus Buy with an average price target near $133, and Morgan Stanley reiterated an Overweight rating and a $135 price target. Supermicro's fiscal fourth quarter revenue reached $11.1 billion, up from $5.8 billion a year earlier, with gross margin recovering to 17.5% from 9.5%, and the company guided fiscal 2027 revenue to a range of $65 billion to $72 billion. Cisco disclosed no committed order volume or pricing, and Supermicro's systems become available through Cisco's channel starting in October 2026.

Cisco Systems is expanding its Secure AI Factory with NVIDIA, embedding security directly into the AI infrastructure stack to counter rivals Palo Alto Networks and Fortinet. The architecture combines Cisco networking, NVIDIA AI infrastructure, and Supermicro rack-scale compute, with security built from silicon through applications and AI agents. Cisco's security revenues rose 14% year over year to $2.23 billion in the fourth quarter of fiscal 2026, and firewall orders grew over 30%. The company added more than 6,400 net new customers for products like Secure Access, XDR, Hypershield, and AI Defense since launch. Fortinet's SASE Firewall business grew 34% to over $2 billion in the second quarter of 2026, while Palo Alto's Prisma AIRS surpassed 300 customers in the third quarter of fiscal 2026. Cisco shares are up 44.2% year to date, and the Zacks Consensus Estimate for fiscal 2027 earnings is $5.11 per share, up 7% over the past 30 days.

Cisco Systems is adding Super Micro Computer systems to its Secure AI Factory, expanding the offering with Nvidia. Supermicro will provide liquid and air-cooled systems, including dense GPU configurations for demanding AI tasks, while Cisco combines them with its networking and security expertise. The alliance supports newer Nvidia platforms like the Vera Rubin NVL72 and HGX Rubin NVL8, where cooling and rack density are critical. Supermicro computation systems are expected to be available in the Cisco offering in October. The agreement gives Cisco another way to capture spending on private AI infrastructure and provides Supermicro a major enterprise sales channel amid fierce competition in AI servers.

Super Micro Computer reported fiscal 2026 revenues rose 78% to $39.1 billion, with more than $60 billion of new orders received in the fourth quarter, leaving a record backlog heading into fiscal 2027. The company guided for fiscal 2027 sales of $65 billion to $72 billion and first-quarter sales of $14.5 billion to $15.5 billion. AI solutions represented about 60% of fourth-quarter fiscal 2026 revenues, but management expects AI-related solutions to exceed 80% of revenues going forward based on backlog. Super Micro Computer continues to emphasize early availability of new AI systems integrated with NVIDIA, Advanced Micro Devices and Intel chips as a competitive advantage.

Super Micro Computer stock surged 8% to $37.88 and Dell Technologies climbed 4% to $452.01 after Taiwanese prosecutors indicted nine individuals rather than the companies, clearing corporate liability concerns. The iShares Semiconductor ETF gained 1% to $513.23, confirming a hardware-led rebound, while the iShares Expanded Tech-Software Sector ETF fell 0.2% to $102.30. Prosecutors in Keelung charged eight of the nine, including one NVIDIA Taiwan employee and two Super Micro Taiwan subsidiary employees, with breach of trust and document forgery, and three with embezzlement. Super Micro said it is not a target of the investigation and has not been accused of wrongdoing. NVIDIA reports fiscal Q3 2026 results after the close on August 26, and Dell reports after the close on September 1.

Super Micro Computer forecast first-quarter fiscal 2027 revenue of $14.5 billion to $15.5 billion, topping even the highest analyst estimate of $13.3 billion. Fourth-quarter net sales nearly doubled to $11.12 billion from $5.76 billion a year earlier, and adjusted earnings of $1.70 a share beat the 92 cents analysts expected. The company also forecast fiscal 2027 revenue of $65 billion to $72 billion, well above the roughly $54 billion analysts had modeled, and said it generated more than $60 billion in new orders over the past year. However, US prosecutors charged co-founder Yih-Shyan Liaw in March 2026 with illegally diverting billions of dollars' worth of Nvidia-powered servers to China in violation of export controls, and Taiwanese prosecutors detained two Super Micro employees in late June 2026 following a raid on local offices. Super Micro itself is not named as a defendant and says it is cooperating with authorities.

Shares of CoreWeave and Super Micro Computer jumped to their highest levels since June on August 12, 2026, a day after both companies delivered upbeat forecasts that signaled booming demand for AI computing capacity. CoreWeave rose more than 19%, and Super Micro climbed more than 13%. CoreWeave raised its forecasts for annual revenue, adjusted operating profit, and capital spending, with its revenue backlog rising to $104.2 billion in the second quarter from $99.4 billion three months earlier, not even counting more than $25 billion in new commitments signed early in the current quarter. Super Micro forecast fiscal 2027 revenue above Wall Street estimates, and its fourth-quarter gross margin of 17.5% beat both its preliminary estimate of 15% to 17% and its original forecast of 8.2% to 8.4%. More than seven brokerages raised price targets on CoreWeave, and hedge fund ownership of both stocks increased in the first quarter of 2026.

Analysts have sharply raised earnings estimates for Super Micro Computer, pushing the stock to a Zacks Rank #1 Strong Buy. The consensus estimate for the current quarter jumped 80.61% over the last 30 days to $1.06 per share, a year-over-year increase of 202.9%, with five upward revisions and none downward. For the full year, the consensus estimate rose 52.18% to $4.43 per share, up 22% from the prior year, after seven analysts raised forecasts. The stock has gained 17% over the past four weeks.

Super Micro Computer shares rose more than 2% in premarket trading Thursday after the AI server maker completed an independent investigation into an alleged export-control smuggling scheme and said it found no evidence that current senior management knew about the alleged diversion. The investigation team reviewed customer transactions that were the subject of the federal indictment, as well as transactions with a selection of other customers who bought restricted products, and did not find any evidence that any current member of senior management had knowledge of the alleged diversion scheme or of any actual diversion of restricted products by the company. Super Micro also said investigators found no evidence that it directly sold export-controlled products to known restricted parties or locations, or that previously issued financial statements were unreliable because of the alleged diversion. The probe was overseen by lead independent director Scott Angel and audit committee chair Tally Liu, with Munger, Tolles & Olson and AlixPartners conducting the work, and Super Micro said it adopted all recommendations designed to strengthen its export-compliance program. The investigation stems from federal allegations that several individuals, including company co-founder Yih-Shyan Wally Liaw and a Taiwan sales manager, helped route Nvidia-powered servers to China despite U.S. export restrictions, with prosecutors alleging the activity generated roughly $2.5 billion in sales since 2024.

Stifel analyst Ruben Roy reiterated a Buy rating on Nvidia with a $282 price target ahead of the company's August 26 earnings report, citing strong AI server demand signals from Foxconn and Super Micro. Foxconn reported second-quarter revenue of NT$2.53 trillion, up 41% year-over-year, with its cloud and networking segment crossing 50% of revenue for the first time and full-year AI rack shipments guided to more than double. Super Micro reported $11.1 billion in fiscal fourth-quarter revenue, nearly double from a year earlier, and guided first-quarter net sales between $14.5 billion and $15.5 billion, well above analyst expectations of $11.9 billion, while booking over $60 billion of new orders in a single quarter. Stifel expects Nvidia to beat estimates and raise guidance, though it flags gross margin guidance as the key metric to watch due to potential pressure from GB300 and Vera Rubin ramp expenses. Hedge fund ownership of Nvidia rose to 275 funds at the end of the first quarter of 2026, up from 264 in the prior quarter, while short interest remains limited at about 1.26% of the public float.

Advanced Micro Devices has launched Instinct Coder, a turnkey enterprise AI inference solution co-developed with Spectro Cloud and Supermicro. The platform targets hybrid and private AI deployments and is built around AMD's MI series accelerators. The partnership focuses on simplifying rollout of enterprise AI infrastructure for corporate IT teams. The launch signals AMD's move beyond selling accelerators into selling a full enterprise AI inference stack, supported by recent fixed income offerings of roughly US$4.7b across 2029, 2031, 2033 and 2036 maturities.

Intel priced an upsized $20 billion public stock offering this week, selling over 210 million shares at $95 each and expecting net proceeds of about $19.7 billion to fund AI-related growth opportunities. Super Micro Computer closed 19% higher on Wednesday after issuing fiscal first-quarter guidance well above Wall Street forecasts, while Lumentum rose 14% on strong fiscal fourth-quarter results and outlook. Workday jumped nearly 18% on Thursday after Reuters reported private equity firm Silver Lake is in talks to buy the software company, with Needham analysts estimating a potential takeover price of $240 to $250 per share. NVIDIA confirmed it is working with a consortium of lenders including Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to raise $500 billion for AI infrastructure, signing a memorandum of understanding to establish first-of-their-kind compute financing platforms at global scale. AMD filed a mixed shelf debt offering that could raise up to $5 billion in four tranches, and Argus upgraded Sandisk to Buy from Hold with a $1,600 price target.

Nine of the ten notable S&P 500 companies reporting earnings this week topped consensus EPS estimates, with nine also posting year-over-year earnings growth. Revenue momentum held firm as eight companies beat Wall Street expectations and all ten achieved year-over-year top-line expansion. Among the standouts, Super Micro Computer surged 19.02% after guiding first-quarter revenue to $14.5 billion to $15.5 billion, while Lumentum Holdings jumped 13.6% on a 109% revenue increase to $1.01 billion. Tapestry slipped 16.49% despite a fiscal fourth-quarter beat and in-line fiscal 2027 outlook, and Cisco Systems dropped 8.40% even as product orders rose 35% year over year.

Advanced Micro Devices, Intel and NVIDIA all closed higher on August 12 after Super Micro Computer's blowout earnings report reignited the AI trade. Super Micro reported fiscal fourth-quarter non-GAAP earnings per share of $1.70, up 139% from analyst projections, and more than $60 billion in new orders during the quarter, up over 50% from $39 billion six weeks prior. Its non-GAAP gross margin more than doubled to 17.6% from a previously forecast 8.2%-8.4% range. AMD rose 1.8% to $483, Intel gained 3.3% to $101, and NVIDIA advanced 3% to $224, as the server maker's order surge validated demand for AI infrastructure across the chip supply chain.

Shares of Marvell Technology, MACOM, Micron, Western Digital, and Semtech jumped in afternoon trading after upbeat earnings and bullish forecasts from AI-related firms signaled robust demand for artificial intelligence technology. Super Micro Computer rallied after its earnings per share came in 84% higher than expected and it provided a revenue forecast that topped estimates, while CoreWeave gained after its sales forecast also exceeded expectations. The optimism spread globally, with Asian markets rising and South Korea's semiconductor exports surging 155% year-over-year in early August. Marvell Technology rose 4.5%, MACOM gained 5.4%, Micron jumped 6.9%, Western Digital added 4.1%, and Semtech climbed 6.9%.

Shares of Entegris, Penguin Solutions, Seagate, Applied Materials, and KLA Corporation soared in afternoon trading after upbeat earnings and bullish forecasts from key AI industry players signaled robust demand for artificial intelligence technology. Super Micro Computer jumped after its earnings per share came in 84% higher than expected and it provided a revenue forecast that topped estimates, while CoreWeave rallied after its sales forecast also exceeded expectations. The positive sentiment spread globally, with Asian markets gaining as traders bought AI- and semiconductor-related shares, supported by a reported 155% year-over-year surge in South Korea's semiconductor exports for early August. Entegris jumped 6.1%, Penguin Solutions rose 4.7%, Seagate climbed 7.2%, Applied Materials gained 5%, and KLA Corporation advanced 4.2%.

Shares of Kulicke and Soffa, AMD, Intel, and Nvidia jumped in afternoon trading after upbeat earnings reports and bullish forecasts from key industry players signaled robust demand for artificial intelligence technology. Super Micro Computer saw its shares jump after its earnings per share came in 84% higher than expected and it provided a revenue forecast that topped estimates, while CoreWeave rallied after its sales forecast also exceeded expectations. The positive sentiment echoed globally, with Asian markets gaining as traders bought into AI- and semiconductor-related shares, supported by a reported 155% year-over-year surge in South Korea's semiconductor exports for early August. Kulicke and Soffa rose 4.7%, AMD gained 2.8%, Intel climbed 4.4%, and Nvidia advanced 3%.

Super Micro reported second quarter fiscal 2026 revenue of $11.12 billion, up 93.2% year over year but below analyst estimates of $11.55 billion, while its non-GAAP earnings per share of $1.70 beat consensus by 77.5%. The company guided next quarter revenue to $15 billion at the midpoint, 26.7% above analysts' estimates, and adjusted EPS guidance of $1.06 also exceeded expectations. Management cited robust AI and data center demand, a record order backlog of over $60 billion, and a favorable shift toward higher-margin enterprise and CPU-based products as key drivers. Operating margin expanded to 13.4% from 4% a year ago, and the company now has market capitalization of $20.44 billion.

Shares of AI server and PC hardware makers rallied after Lenovo reported a blowout quarter. Super Micro Computer surged 10% to $41, Dell Technologies rose 3% toward $500, Hewlett Packard Enterprise gained 5%, and HP Inc. added 3%. Lenovo's April-to-June revenue of $26.94 billion beat Wall Street's $22.44 billion estimate, and its AI server pipeline jumped 157% sequentially to $54 billion. Super Micro also guided fiscal 2027 revenue to $65 billion to $72 billion, far above the $53.3 billion consensus, though negative operating cash flow remains a concern.

CoreWeave, Nebius, and Supermicro each reported strong quarterly results after the bell on Tuesday, sending their shares soaring on Wednesday as investors shrugged off AI bubble fears. Nebius saw revenue of $582.3 million, up 454% year-over-year from $105.1 million, and signed four major AI cloud deals with an average total contract value of more than $1 billion. CoreWeave's revenue increased 112% to $2.5 billion from $1.2 billion, while its revenue backlog grew 246% to $104.2 billion, and Supermicro posted adjusted earnings per share of $1.70, beating expectations of $1.59, with net sales guidance of $14.5 billion to $15.5 billion versus Wall Street's $11.9 billion projection. The three companies are spending heavily on GPUs and AI infrastructure, with Nebius reporting $5.7 billion in capital expenditures and CoreWeave $9.4 billion, while CoreWeave's adjusted net losses expanded to -$567 million from -$130 million last year.

Super Micro Computer reported fiscal fourth-quarter revenue of $11.1 billion, nearly doubling from a year ago but missing the $11.55 billion analysts expected, while guiding fiscal 2027 revenue to $65 billion to $72 billion, far above the $52.5 billion consensus. Gross margin reached 17.5%, above the preliminary 15% to 17% range the company flagged in July, driving net income to $1,178 million, up about sixfold from $195 million a year earlier. The company received more than $60 billion of new orders in the quarter, pushing its backlog to record levels, though it noted some commitments may not be firm. Inventories ended the year at $12.9 billion, nearly triple the $4.7 billion of a year ago, while receivables grew to $6.1 billion from $2.2 billion, and Supermicro finished with $7.5 billion of cash against $8.7 billion of bank debt and convertible notes. Shares rose about 7% in Tuesday's extended session and about 19% on Wednesday, trading around $38, or about 11.5 times fiscal 2026 earnings.

Micron Technology shares climbed more than 5% Wednesday as executives said industry memory supply may remain constrained through 2027 and demand from data-center operators is outpacing available production. The company indicated it can currently fulfill only part of customer requirements, while recent order activity from CoreWeave and Super Micro Computer has pointed to continued data-center investment. UBS maintained a Buy rating and raised its longer-term earnings outlook, and Mizuho cited potential upside as tight supply persists. Micron is scheduled to report its next quarterly results on Sept. 22, with Wall Street expecting $31.27 in earnings per share and $50.81 billion in revenue.

Lumentum shares surged 15% to $942 in midday trading Wednesday after the optical components maker reported fiscal Q4 2026 revenue of $1.01 billion, more than doubling year over year and topping the $988.6 million consensus, with non-GAAP EPS of $3.23 versus the $2.99 consensus and non-GAAP gross margin of 50.4%. The company guided fiscal Q1 2027 revenue of $1.225 billion to $1.275 billion and EPS of $4.05 to $4.35, with CEO Michael Hurlston saying it will hit its $1.25 billion quarterly revenue target more than a quarter early, pump-laser shipments up more than 80% year over year and effectively sold out, and the 1.6T transceiver ramp accelerating. The rally spilled across the AI optics complex, with Coherent up 9% to $358, Corning up 5% to $167, Applied Optoelectronics up 3% to $139, Ciena up 13%, and the iShares Semiconductor ETF trading at $551, while Super Micro Computer jumped 16%, CoreWeave soared 20%, and Nebius Group surged 27% on AI infrastructure prints that reinforced hyperscaler capex momentum. JPMorgan raised its Lumentum price target to $1,280 from $1,165 with an Overweight rating, Mizuho lifted its target to $1,140 from $1,100 with an Outperform rating, and Morgan Stanley raised its target to $1,000 from $900 with an Equal Weight rating, while Bank of America cut its target to $1,000 from $1,100 with a Neutral rating even after raising CY2027 and CY2028 EPS estimates by 19% each, reflecting a de-rating across shortage-area names.

U.S. stocks traded higher on Wednesday, lifted by a favorable July CPI report and better-than-expected earnings from AI-related companies CoreWeave and Super Micro Computer. The S&P 500 rose 0.25%, the Dow Jones Industrial Average gained 0.07%, and the Nasdaq 100 advanced 0.85%. July CPI eased to 3.4% year-over-year from 3.5% in June, while core CPI slowed to 2.5% from 2.6%, reducing the odds of a rate hike at the next FOMC meeting to 39% from 51% on Tuesday. CoreWeave surged more than 18% after guiding third-quarter revenue to $3.45-3.60 billion and raising full-year guidance to $12.4-13.2 billion, while Super Micro Computer jumped over 13% on strong revenue guidance, boosting chip stocks broadly.

Several companies made notable moves in midday trading, led by Wendy's jumping 13% after The Financial Times reported that Nelson Peltz' Trian Fund Management was preparing a bid to take the fast food chain private. Quantinuum rallied more than 21% after issuing better-than-expected 2026 revenue guidance of $28 million to $32 million, above the FactSet consensus of $26.5 million. CoreWeave gained 18% after reporting second quarter adjusted operating income margin of 5%, beating the StreetAccount estimate of 2.7%, and revenue of $2.58 billion, up 112% year over year. Super Micro Computer rose 14% on strong first quarter guidance, expecting adjusted earnings of $1.01 to $1.10 per share versus the LSEG consensus of 76 cents, and revenue of $14.5 billion to $15.5 billion, far above the anticipated $11.68 billion. H&R Block surged 15% after issuing an upbeat fiscal 2027 forecast of adjusted earnings between $6.04 and $6.24 per share on revenue of $4.11 billion to $4.16 billion, compared to LSEG estimates of $5.86 per share and $4.05 billion. Cava Group jumped 12% after second quarter earnings of 19 cents per share topped the LSEG consensus of 18 cents, with revenue of $368.4 million beating the expected $361 million. National Vision tumbled 6% after full-year guidance of 94 cents to $1.09 per share on revenue of $2.037 billion to $2.076 billion fell short of FactSet estimates of 96 cents and $2.06 billion. Aecom dropped 6% on weak fiscal third quarter results, with revenue of $3.59 billion down about 14% year over year and net service revenue in the Americas of $808.4 million below the FactSet forecast of $1.24 billion. Velo3D jumped 12% after raising its full-year revenue outlook to $65 million to $75 million, up from $60 million to $70 million, versus the FactSet consensus of $64.4 million. Lumentum Holdings rose 15% after fourth quarter adjusted earnings and revenue exceeded expectations, and Nebius Group jumped more than 25% on better-than-expected EBITDA and revenues. Coherent gained more than 9% ahead of its own earnings after the bell, and Kontoor Brands added 7% after second quarter earnings slightly beat expectations and full-year guidance was raised above consensus.

Oracle and Super Micro Computer both closed fiscal 2026 with strong AI-driven results but also burned billions in cash. Oracle's remaining performance obligations hit $638 billion, up 363% year over year, and management confirmed a $90 billion FY2027 revenue target with non-GAAP EPS raised to $8.05. Supermicro's Q4 non-GAAP EPS of $1.70 beat consensus by 77.55%, and gross margin doubled to 17.5% GAAP, though revenue of $11.12 billion missed estimates. Both companies face cash challenges: Oracle plans to raise roughly $40 billion in FY2027, while Supermicro reported negative $6.81 billion in operating cash flow and an ongoing export-control review. Oracle's 36.2% operating margin and multicloud footprint make it the cleaner AI infrastructure play, while Supermicro offers higher upside but carries governance risk.

CoreWeave and Super Micro Computer stocks surged after both companies reported quarterly earnings that signaled strong AI demand. CoreWeave disclosed a backlog exceeding $100 billion, up about 50% from the prior quarter, and noted $25 billion in new customer orders after the quarter ended. Super Micro said demand would have been higher if not for constraints in power, cooling, and energy, while its margins rose well above expectations due to rising prices. Analysts at Wedbush said payback for AI infrastructure bills is under three years, and Deutsche Bank noted the results validate strong AI demand globally. The reports raise expectations for Nvidia's earnings on August 26th, with attention on how Nvidia manages financing for its own infrastructure expansion.

Super Micro Computer issued fiscal 2027 revenue guidance of $65 billion to $72 billion, far above the $52.5 billion consensus, driving its shares up 13% and lifting peers Dell Technologies and Hewlett Packard Enterprise by 5% and 3%, respectively. The company also reported fourth-quarter adjusted earnings per share of $1.70 on revenue of $11.1 billion, nearly double the prior year, and disclosed a record $60 billion order book. Analysts at Barclays, Citi, Goldman Sachs, and Bank of America raised their price targets on Super Micro but maintained cautious ratings, questioning whether the 17.6% gross margin can be sustained. NVIDIA shares rose 2.5% as the strong server demand signaled continued investment in GPU-powered AI infrastructure.

The S&P 500 opened at a record high on Wednesday after July's consumer price index met expectations, easing concerns about further Federal Reserve rate increases. Headline consumer prices rose 0.1% month-over-month and 3.4% annually, down from 3.5% in June, while the core measure came in at 0.2% for the month and 2.5% annually. Futures markets now price a 58% probability that the Fed will hold rates at its September meeting, up from just over 45% a week ago. AI-linked stocks provided a separate boost, with CoreWeave shares surging 21% after the company reported a second-quarter adjusted operating income margin of 5% that beat analyst estimates and revenue that doubled year-over-year. Super Micro Computer rose 9% on an upbeat profit and sales outlook, while Dell Technologies, Micron Technology, Cisco Systems, and Nebius also advanced.

Several technology and consumer companies made significant premarket moves following earnings reports and guidance updates. Super Micro Computer rallied more than 7.5% after issuing first-quarter guidance for adjusted earnings of $1.01 to $1.10 per share on revenue of $14.5 billion to $15.5 billion, both well above consensus estimates. CoreWeave gained more than 18.5% as second-quarter revenue rose 112% to $2.58 billion and adjusted operating income margin reached 5%, exceeding forecasts. Nebius Group jumped more than 12.5% on better-than-expected EBITDA and revenue, while Lumentum Holdings rose more than 8% after beating fourth-quarter estimates. H&R Block surged 11% on an upbeat fiscal 2027 outlook, and Cava Group added almost 12% after topping earnings and revenue expectations. In contrast, Kontoor Brands fell nearly 3% on a slight revenue miss, and software stocks including Workday, Salesforce, Palantir Technologies, and ServiceNow each declined more than 1%.

Shares of CoreWeave and Super Micro Computer rose premarket on Wednesday after both AI infrastructure companies issued upbeat forecasts that reinforced demand expectations for computing capacity. CoreWeave raised its annual revenue, adjusted operating profit, and capital spending outlook, citing strong demand for its Nvidia-powered AI infrastructure and better pricing on new contracts, with its revenue backlog climbing to $104.2 billion from $99.4 billion three months earlier, excluding over $25 billion in new commitments secured early this quarter. Super Micro forecast 2027 revenue above Wall Street estimates, underscoring resilient customer investment in AI servers, and reported a fourth-quarter gross margin of 17.5%, exceeding its preliminary estimate of 15% to 17%. CoreWeave shares rose more than 18%, Super Micro climbed nearly 9%, and peers Nebius Group, Applied Digital, and IREN Ltd also gained.

Advanced Micro Devices reported higher second-quarter 2026 sales and net income versus a year earlier, issued third-quarter revenue guidance, and unveiled AMD Instinct Coder, a turnkey enterprise AI inference solution built with Spectro Cloud and Supermicro on Instinct MI325X GPUs. The company also announced a planned acquisition of AI inference startup Taalas and a large-scale data center capacity partnership with Core Scientific, intensifying its push to offer full-stack AI hardware and software for cloud and enterprise customers. AMD's investment narrative projects $106.2 billion revenue and $28.9 billion earnings by 2029, requiring 41.6% yearly revenue growth and an earnings increase of about $24.0 billion from $4.9 billion today. Some analysts assume more cautious 2029 revenue of about $88.2 billion and earnings of $15.0 billion, worrying that rising R&D and foundry costs could pressure margins even if new AI systems gain traction.

Super Micro Computer shares rose 4% to $32.48 in Monday trading ahead of its fiscal fourth-quarter 2026 earnings report, dragging Hewlett Packard Enterprise up 4% to $55.20 and Dell Technologies up 3% to $468.67. The iShares U.S. Technology ETF closed flat at $253.33, signaling a server-specific rotation rather than a broad tech rally. Super Micro preannounced gross margins of 15% to 17%, nearly double its prior outlook, and a record order backlog exceeding $60 billion, with Wall Street expecting roughly $0.68 in earnings per share on about $11 billion in revenue. Options positioning is skewed bullish, with a full-chain put/call ratio of 0.3, and the stock has historically moved an average of 12% on earnings day. The report is due after Tuesday's close.