Supermicro stock jumps as server maker lifts revenue forecast

What happened: Supermicro ( SMCI ) stock jumped 12% in early trading on Wednesday, while peers Dell Technologies ( DELL ) and Hewlett Packard Enterprise ( HPE ) gained 5% and 4%, respectively.

What's behind the move: The AI server maker raised its fiscal first quarter revenue forecast by $4 billion, signaling stronger-than-expected demand for artificial intelligence infrastructure.

Supermicro now expects revenue of $18.5 billion to $19.5 billion for the quarter ended Sept. 30, up from its previous forecast of $14.5 billion to $15.5 billion.

The company also raised its gross margin forecast to 12% to 12.5%, compared with its previous outlook of 10.4% to 10.8%, citing a more favorable customer and product mix.

Supermicro will present its complete Q1 fiscal year 2027 financial results on Nov. 3.

What else you need to know: Supermicro designs and builds servers and data center systems that incorporate semiconductors from chipmakers like Nvidia ( NVDA ), Intel ( INTC ), and AMD ( AMD ).

Supermicro's update comes as investors weigh the AI trade, signaling that demand for hardware remains robust, even as questions persist about the returns on massive data-center investments.

The rally also puts AI-related stocks back in focus following SpaceX's ( SPCX ) AI-driven results.

Year to date, Supermicro stock is up roughly 10%.

Ines Ferre is a senior business reporter for Yahoo Finance.