Why SMCI Stock Rocketed Over 25% After-Hours — A $60B Backlog Has Retail Buzzing

• Super Micro raised its Q4 gross margin forecast to 15%-17% from 8.2%-8.4%, citing a favorable customer and product mix.
• Stocktwits retail traders said the company appeared undervalued, with one speculating that SpaceX could be among the customers behind the record backlog.
• Despite the upbeat business update, Wall Street maintains an overall ‘Hold’ consensus on the stock, even as analysts expect EPS to jump nearly 71% and revenue to more than double.

Shares of Super Micro Computer Inc. (SMCI) rocketed over 25% in after-hours trading on Tuesday after the company issued a strong preliminary Q4 fiscal 2026 update.

The stock had already ended the regular session around 7% higher before extending gains following the announcement.

At the time of writing, SMCI stock had pared some of those after-hours gains and was up around 18%.

SMCI Reports Record Backlog, Strong Demand

Super Micro said its backlog reached record levels at the end of fiscal 2026, driven by a major surge in demand. The company received more than $60 billion in new orders during the fourth quarter, with the orders expected to be “delivered over future quarters,” the company said in a release.

The company said the strong order flow pushed its total backlog to record levels, highlighting continued demand for its AI, enterprise, storage and 5G/Edge IT solutions.

Gross Margin Outlook Improves

Alongside the backlog update, Super Micro raised its fourth-quarter gross margin expectations to 15%-17%, significantly above its previous guidance of 8.2%-8.4%.

The company attributed the improvement primarily to a favorable customer and product mix, with gross margins expected to come in around 16%.

Super Micro expects fiscal Q4 revenue to be near the lower end of its $11 billion-$12.5 billion guidance range.

SMCI Earnings: What Analysts Expect

Super Micro is scheduled to report its earnings on August 11. According to Fiscal.ai, analysts expect the company to report fourth-quarter EPS of $0.70, up nearly 71% from $0.41 in the year-ago period. Revenue is projected to more than double to $11.73 billion from $5.75 billion in the same quarter last year.

Despite the strong growth outlook, Wall Street’s consensus on SMCI remains cautious, with an overall ‘Hold’ rating. According to Koyfin, 11 of the 19 analysts covering the stock rate it ‘Hold,’ while five recommend ‘Buy’ or ‘Strong Buy.’ Of the remaining three, two rate it ‘Sell’ and one rates it ‘Strong Sell.’

The 12-month average price target is $37.38, implying nearly 57% upside from Tuesday's close.

SMCI Stock: Stocktwits Retail Sentiment

Retail sentiment on Stocktwits for SMCI improved to ‘neutral’ from ‘bearish’ in the past 24 hours, while message volume was ‘normal.’

Super Micro’s preliminary Q4 update sparked a wave of bullish reactions on Stocktwits, with retail traders focusing on the company’s record backlog, stronger margin outlook and potential customer wins.

One retail trader questioned why the stock was “lingering down here,” adding that “the earnings power has completely doubled” following the preliminary Q4 update.

Another retail trader said, “they just pre announced 60 billion more... with 20% margins,” adding that “the company is only 15 billion capitalization! This is insanely under valued.”

A third retail trader said they “can't wait to hear who the customers are” behind the $60 billion backlog on the conference call, speculating that SpaceX could be among them.

SMCI shares have fallen around 15% year-to-date.

Also Read: BA Stock Slips Despite Boeing’s Farnborough Order Spree — Retail Stays Bullish As One Trader Sees $50 Pop After Earnings 

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