By George Glover

Super Micro Computer stock surged on Wednesday after the server maker reported better-than-expected earnings and revenue, helping investors to look past tighter margins.

Shares, which trade under the ticker SMCI, rose 13% to $33.76. The S&P 500 was down 0.5%.

The move higher came after Super Micro reported adjusted earnings for its fiscal second quarter of 69 cents a share, as revenue surged 123% from a year ago to $12.7 billion. Analysts were expecting earnings of 49 cents a share on revenue of $10.4 billion, according to a FactSet poll.

Guidance also looked solid. The company expects adjusted earnings of 60 cents a share and revenue of $12.3 billion for the current quarter. Wall Street was looking for earnings of 46 cents a share and $11.3 billion in revenue.

Shares of the onetime artificial-intelligence darling have been struggling, tumbling 29% over the past three months after SMCI reported weak first-quarter earnings and issued a mixed outlook for the current fiscal year.

The results late Tuesday could stop the rot, signaling to investors that the AI boom is still boosting demand for Super Micro's computer hardware despite the bad run for shares.

"The first time we can say there wasn't a miss in more than one year," KeyBanc analyst Brandon Nispel, who rates SMCI at Sector Weight, wrote in a research note.

"We think SMCI and other Server providers, should have strong demand," he added. "That said, we need to see several quarters of both margins and revenue execution to get more comfortable with the stock."

Super Micro reported a gross margin of 6.3% for the quarter, down from 11.8% in a year ago.

CEO Charles Liang said on an earnings call that the margin weakness was down to customer mix, tariffs, and shortages of key components including memory products.

Softer margins have been a major worry for Wall Street for a while now, so don't be surprised if that figure ends up capping the stock's gains.

Write to George Glover at george.glover@dowjones.com

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February 04, 2026 16:14 ET (21:14 GMT)

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