Super Micro shares rally after record high backlog in Q4

The news: Shares in Super Micro Computer jumped 18% in extended trading to USD30.12 ($43.03) after the chipmaker said preliminary results showed its backlog reached a record high, driven by more than USD60 billion in new orders during the quarter.

The context: Super Micro said in a statement that it expects its gross margins to be in the range of 15% to 17% for the fourth quarter ended 30 June, well exceeding its prior forecast of 8.2% to 8.4%, driven by a favourable customer and product mix.

However, fourth-quarter revenue is expected to fall near the lower end of its previous guidance of USD11 billion to USD12.5 billion, with analysts surveyed by LSEG expecting revenue of USD11.67 billion.

The company also added that new orders “are expected to be delivered over future quarters,” signalling strong forward revenue and suggesting Super Micro is winning more contracts, Bloomberg reported.