Chip, storage shares continued to jump on Wednesday. SMCI up nearly 14%; SOXL up over 9%; SK Hynix, Seagate Tech up around 8%; SanDisk up over 7%; Micron, Western Digital, Navitas up nearly 6%.

Super Micro Computer Inc (SMCI) released its fiscal fourth-quarter results for the period ending June 30, 2026, sending a clear signal: while revenue slightly missed Wall Street expectations, profitability improved significantly, and guidance for the new fiscal quarter vastly surpassed market forecasts. This was the primary factor driving the stock's sharp gains in after-hours trading.

For the fourth quarter, the company reported net sales of $11.12 billion, approximately 1.2% below analyst estimates, but nearly double the amount from the same period last year. On a non-GAAP basis, adjusted earnings per share (EPS) surged 315% year-over-year to $1.70, beating market expectations by almost 7%. More crucially, the company's gross margin showed a clear recovery, reaching 17.5% in the fourth quarter, with an adjusted gross margin of 17.6%. This not only exceeded the company's previously raised guidance range of 15% to 17% but was also significantly higher than the initial forecast of 8.2% to 8.4%.

Looking ahead to the current fiscal quarter, Super Micro Computer provided even stronger guidance. The company forecasts first-quarter net sales between $14.5 billion and $15.5 billion, with the midpoint coming in 25% higher than analyst expectations. It also anticipates adjusted EPS of $1.01 to $1.10, which is nearly 43% above market consensus. This suggests that despite the market's existing expectations for AI server demand, the company's path for order conversion and revenue growth is still exceeding projections.