Jul. 22 at 12:01 AM
Dell Technologies shares climbed in after-hours trading after Super Micro Computer's preliminary Q4 FY2026 business update provided a strong boost to the AI server sector. SMCI expects gross margins of 15%-17%, significantly above its previous guidance of approximately 8.2%-8.4%, driven by a more favorable customer and product mix. The company also reported record backlog levels and more than
$60 billion in new orders during the quarter, underscoring robust and accelerating demand for AI-optimized infrastructure.
The market interpreted SMCI's results as a sign of healthier pricing dynamics and sustained demand across the AI infrastructure ecosystem, benefiting peers such as Dell and Hewlett Packard Enterprise. Dell, which is well positioned in enterprise AI servers and infrastructure, was seen as a key beneficiary of continued AI-related spending. Its after-hours gains contrasted with a muted regular trading session, during which broader U.S. indexes posted modest declines.
$DELL $SMCI