Super Micro jumps 18% on upbeat Q4 forecast

San Jose server maker Super Micro rose about 18% in extended trading after issuing a strong fiscal fourth-quarter forecast.

The company expects adjusted profit of 65 cents to 79 cents per share on revenue of US$11.2 billion to US$12.5 billion.

The forecast topped analyst estimates of 57 US cents a share and matched expected revenue of US$11.2 billion.

For the quarter ended March 31, the company reported adjusted gross margin of 10.1% and adjusted profit of 84 US cents a share.

That beat estimates of 6.75% and 63 US cents.

Super Micro is also dealing with governance and export control scrutiny after US prosecutors in March charged co-founder Wally Liaw with diverting Nvidia servers to China.

The company was not named as a defendant.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Supermicro’s growth is drawing heavily on cash tied up in day-to-day operations

Revenue is expected to rise, yet the business is burning through cash faster to support that push 1.
In the six months ended December 31, 2025, Supermicro used US$941 million in operating cash. A year earlier, it generated US$169 million over the same span 1.
The shortfall came from steep jumps in inventory and accounts receivable. Those two items rose by about US$14.9 billion during the period 1.
Sales are climbing, though more money is sitting in stock and unpaid invoices. Handling that strain will matter for keeping expansion on track 1.

The co-founder’s indictment raises export-control and supply-chain risk in AI hardware

The case adds to a wider threat hanging over AI hardware companies 2.
Prosecutors allege about US$510 million in servers moved through a Southeast Asian intermediary, a middleman company in the region, before ending up in China. The route matches a transshipment tactic used to dodge U.S. export controls, which limit sales of sensitive technology to certain countries 3.
The action makes clear that U.S. authorities are pursuing diversion schemes, which puts server makers and other hardware vendors on alert 2.
That pressure could force companies to review sales partners, spend more on compliance, and wait longer to close overseas deals 2.