Supermicro stock (SMCI) jumped nearly 10% in after market trading on Tuesday. It follows Super Micro Computer posting a 17.5% quarterly gross margin, almost double last year, and a record order backlog.
Less than two years ago, the AI server maker was fighting to keep its Nasdaq listing. Now it projects up to $72 billion in annual sales.
Why Supermicro Stock Rallied on Doubled Margins
Supermicro reported results after Tuesday’s close. Net sales reached $11.1 billion for the quarter ended June 30, nearly double the $5.8 billion a year earlier.
Yet the margin move stole the show. Gross margin hit 17.5%, up from 9.9% just three months earlier. Net income climbed six-fold to $1.18…
