TradingKey – Super Micro Computer (NASDAQ: SMCI) rallied 22% to 24% in Wednesday July 22 after issuing a preliminary Q4 fiscal update. The company reported Q4 revenues expected to be at the low end of its previously-guided $11.0 billion to $12.5 billion range, which obviously did not qualify as a revenue beat. Instead, the move was triggered by a gross margin guidance revision that now forecasts 15% to 17% gross margin compared to previously-guided 8.2% to 8.4%, reflecting a better customer and product mix. 

In addition, the company reported record backlog exceeding $60 billion representing new AI servers in its history. The stock trading at just above $23 at the start of Wednesday, jumped over $30 per share after the news came out.