Supermicro Stock Soars on Record Backlog and Improved Margins

Supermicro stock (SMCI) jumped nearly 10% in after-market trading on Tuesday, following a strong quarterly report from the AI server maker.

The company posted a 17.5% quarterly gross margin, almost double last year's figure of 9.9%, and reported net sales of $11.1 billion for the quarter ended June 30, up from $5.8 billion a year earlier.

Supermicro CEO Charles Liang attributed the improvement in profitability to a richer enterprise customer mix and broader adoption of their Data Center Building Block Solutions (DCBBS) architecture.

The company's stock price has been on a tear, with projections suggesting annual sales could hit $72 billion. The September-quarter revenue is expected to be between $14.5 billion and $15.5 billion, over 30% above the June quarter.