1134 ET - Super Micro Computer's recent business update came as a pleasant surprise to investors on two fronts, JPMorgan analysts say in a research note. The artificial-intelligence server firm late Tuesday sharply raised its gross margin outlook for the current quarter, for one. And it also guided for higher-than-expected orders, the analysts say. The updates were well received on Wall Street, with Super Micro's stock up 25%. Peers including Dell Technologies and Hewlett Packard Enterprise also got a boost, up 9.3% and 5.2%, respectively. The question now is how long the growth can last, the analysts say: "Heading into the earnings call on August 11th, we would expect investors to focus on the sustainability of these margins, particularly given the ever-present overhang associated with memory headwinds." (connor.hart@wsj.com)

(END) Dow Jones Newswires

July 22, 2026 11:34 ET (15:34 GMT)

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