AI Boom Lifts SMCI on Strong Q2, Margin Pressure Persists

Super Micro Computer reported fiscal Q2 adjusted earnings of $0.69 a share on revenue of $12.7 billion, up 123% year over year and ahead of expectations, as AI demand boosts server sales. The stock rose about 16% after the report, even though gross margin declined to 6.3% from 11.8% a year earlier. Guidance was solid, with expected Q3 revenue of ~$12.3 billion and earnings of $0.60 per share, signaling continued demand but ongoing margin pressure.