Story
Super Micro Surges 20% on $60 Billion Order Influx; Nuclear Stocks Rally on AI Power Initiative
Summary
Super Micro Computer shares soared in late trading after a preliminary update revealed record new orders, while nuclear energy developers Oklo and X-Energy gained on reports of a federal program to power AI data centers.
Super Micro Computer (SMCI) shares surged 20% in after-hours trading following a bullish preliminary fourth-quarter update that signaled unabated demand for its AI-focused servers. The company's report also lifted shares of server peers Dell Technologies and Hewlett Packard Enterprise, which rose 5% and 4.5% respectively in sympathy.
AI Demand Drives Market Movers
Super Micro announced that new orders for its fourth fiscal quarter exceeded a record $60 billion. While the company expects revenue to be near the low end of its prior $11.0–$12.5 billion guidance, it projected a significant expansion in profitability.
Key details from the update include:
- Gross Margins: Expected to be between 15% and 17%, nearly double the previously guided range of 8.2% to 8.4%.
- Reason: The company attributed the margin expansion to a favorable product and customer mix, suggesting strong pricing power for its high-end AI systems.
AdIn related news, nuclear energy developers Oklo (OKLO) and X-Energy (XE) saw their shares climb 8% and 12%, respectively. The rally followed reports that the companies are set to join a $200 million federal program, alongside tech giants like Microsoft and Nvidia, to accelerate the development of nuclear reactors specifically for powering AI data centers.
Disappointing Results Weigh on Other Stocks
In contrast, several companies saw their shares fall on negative corporate news. Pegasystems (PEGA) dropped 8% after its second-quarter results missed analyst expectations. The enterprise AI software firm reported earnings per share of $0.35 on revenue of $420.72 million, falling short of the consensus estimates of $0.43 and $427.38 million.
Celldex Therapeutics (CLDX) declined 8% after announcing its Phase 2 study of barzolvolimab in patients with prurigo nodularis failed to meet its primary and secondary endpoints. The company stated it would discontinue the trial for this indication. Meanwhile, Alaska Air Group (ALK) slid 4% after issuing a weak third-quarter earnings forecast. The carrier projected Q3 EPS between $0.00 and $1.00, significantly below the Wall Street consensus of $1.48, citing higher operating costs.
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