Core Announcement
Dell Technologies (NYSE: DELL) shares surged approximately 5% in after‑hours trading on Tuesday, following the release of bullish margin guidance by competitor Super Micro Computer (SMCI). The market reaction was reflected in the ticker updates showing DELL up 5.83% and SMCI up 7.01%.
Super Micro Guidance Details
Super Micro Computer disclosed that its GAAP and non‑GAAP gross margins for the fourth quarter of fiscal year 2026 are now estimated to be in the 15% to 17% range. This represents a substantial increase from its earlier guidance of 8.2% to 8.4%. The company attributed the margin expansion primarily to a favorable customer and product mix.
Revenue and Order Backlog
The server maker also indicated that fourth‑quarter FY2026 revenue is expected to be near the low end of its previously provided guidance of $11.0 billion to $12.5 billion. Additionally, Super Micro reported a record backlog at the end of fiscal 2026, with total new orders exceeding $60 billion received during the fourth quarter, to be fulfilled over subsequent quarters.
Market Impact on Dell
The margin improvement at Super Micro appears to have lifted sentiment around Dell, as both firms compete in the AI server market. Dell’s stock price reaction underscores investor optimism that stronger margins in the competitive set could benefit the broader sector.
Publication Details
The article, authored by Frank DeMatteo and published on 22‑07‑2026 at 03:38 am, is sourced from Reuters and was generated with AI assistance, subsequently reviewed by an editor.