Super Micro guidance lifts Asian chip stocks, KOSPI up 4.6%

Super Micro assembles servers that incorporate processors and accelerators from suppliers, which makes its preliminary sales figures a useful indicator of demand for data-centre hardware. The company also raised its preliminary gross margin outlook to 12%–12.5%, from 10.4%–10.8%, citing a more favourable customer and product mix. Those numbers, though unaudited, gave investors a data point they were looking for after a sharp sell-off in technology stocks last week.

The earlier pullback had been prompted by rising bond yields and questions over the cost of financing AI infrastructure, which had led investors to reassess valuations and the returns companies may earn from heavy spending. Concerns over debt-funded data-centre expansion, including those surrounding cloud computing provider CoreWeave, added to market volatility. Against that backdrop, Super Micro's outlook offered a measure of relief.

In after-hours trading on Tuesday, Super Micro shares rose about 12% following the update. Investors will look to upcoming technology earnings for further evidence that demand is translating into sustainable revenue and profitability, rather than simply driving another burst of enthusiasm for AI-related stocks.