Super Micro says fourth-quarter orders topped $60 billion
Super Micro Computer said on Tuesday it has received orders in excess of $60 billion in the fourth quarter, helped by growing demand for its advanced AI servers, sending the company's shares up 16% in extended trading.
Super Micro Computer Says Fourth-Quarter Margins Will Be Twice as High as Expected
The server company said it now expects gross margins of 15% to 17%, up from its previous guidance for up 8.2% to 8.4%.
Alphabet Just Cut Share Buybacks To $0, While Acquiring A $40 Billion Stake In A Rival AI Company
GOOGL ended a decade of buybacks, redirecting cash from a $300 billion repurchase streak into annual AI capex projected between $175 billion and $185 billion. Alphabet bet $40 billion on rival Anthropic while Google Cloud must hit 70% YoY growth to validate scrapping shareholder returns.
Wall Street Breakfast Podcast: Super Micro Heats Up
Super Micro Computer (SMCI) shares are up 16% in premarket action after providing fourth quarter preliminary guidance and raising its gross margin outlook. SMCI also rose 7% on Tuesday. Super Micro Computer said revenues for the fourth quarter of fiscal year 2026 are estimated to be near the low end of guidance of $11 billion to $12.5 billion. Consensus for fourth quarter revenue is $11.73 billion. The company said GAAP and non-GAAP gross margins are estimated to be in the range of 15% to 17%, higher than its guidance of 8.2% to 8.4%, primarily due to a favorable customer and product mix. Backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026. These new orders are expected to be delivered over future quarters.
Wall Street Breakfast Podcast: Nebius Gets NVDA Lift
TSMC to raise chip manufacturing prices by up to 10% in 2027: Nikkei
Why Sandisk Stock Is Still Going Up
TSMC raises prices Nikkei Asia reports today that TSMC will raise its prices for contract chip manufacturing (for customers such as Nvidia and AMD, for example) by "up to 10%" in 2027 (with the potential for some chip prices to spike 20%).
TSMC to Raise Chip Prices by Up to 10% in 2027: Report
TSMC recently raised its 2026 spending projections as it responds to strong artificial intelligence demand and the rising cost of expanding manufacturing capacity.
Taiwan Semiconductor (TSM) Stock Is Down Nearly 15% This Month Despite Record AI Demand. Here Is Why
Second quarter net profit rose 77% year-over-year to a record T$706.6 billion ($22 billion), beating the LSEG consensus estimate of T$632.6 billion ($19.65 billion) and marking its ninth straight quarter of double-digit growth. TSM raised its full-year 2026 revenue growth (U.S. dollar terms) outlook to slightly above 40% from above 30% and guided third-quarter sales to $44.6 billion to $45.8 billion, which compared strongly to $33.1 billion a year earlier. Capex was the number to watch: Taiwan Semiconductor Manufacturing Company (NYSE:TSM)'s prior guidance topped out at $52 billion to $56 billion, and BofA's Asia semiconductor analyst forecast a raise to roughly $58 billion. Taiwan Semiconductor Manufacturing Company (NYSE:TSM)'s actual capex guidance for 2026 came in at $60 billion to $64 billion, about 14% above the prior range and above even the raised pre-earnings estimates.
Taiwan Semiconductor Manufacturing Just Gave 100 Billion Reasons Why the AI Build-Out Will Last for Several More Years
During its second quarter conference call, TSMC announced an additional $100 billion in investment for its Arizona chip production facilities. CEO C.C. Wei was asked on the conference call by an analyst how long he believes the AI build-out will last, and he stated that demand will remain very strong through 2029 to 2030.
Data centers expected to use 4x more electricity by 2035
Data centers are expected to use one-fifth of the electricity generated in the U.S. by 2035, four times that of today, according to a new report from BloombergNEF. A surge in AI compute will push data center capacity to nearly 200 gigawatts over the next decade, the report predicts. Nearly half of that capacity will be devoted to training and inference, and most of that will remain concentrated in the U.S. By 2033, the country will host 64% of AI chips by power demand. BloombergNEF’s new estimate for electricity demand in 2035 is 83% higher than what the consultancy predicted in December. Other organizations have raised their forecasts, too. EPRI, an electrical industry nonprofit, has more than doubled its 2024 estimate, while S&P’s forecast rose by more than a third between October and April. The revisions reflect the fevered pace of data center development across the U.S. In the coming decade, BloombergNEF expects the majority of new data centers to hit electrical grids that are already strained. The PJM Interconnection, which spans Virginia to Illinois, will see 34% of its electricity go to data centers, while ERCOT, which covers most of Texas, will have to devote 22% of its generating capacity. PJM, which already hosts a large number of the country’s data centers, has struggled to cope with connection requests from both large generators and large loads. It paused applications for new sources to connect to the grid for four years, putting it in a precarious position as demand continued to grow. Though PJM reopened the queue to new generating sources in April, the situation has grown so dire that one utility, American Electric Power, has threatened to pull out of the interconnection. The supply-demand imbalance has pushed electricity prices up 76% over the past year. Even with the congestion, data centers still want to connect to PJM — they represented 38% of charges in the grid manager’s most recent capacity auction. Despite the U.S. claiming a majority of AI compute, data centers will continue to grow elsewhere. By 2033, if AI adoption continues along an aggressive trajectory, data centers will create 1,935 terawatt-hours of new electricity demand worldwide, nearly as much as India uses annually.
Charles Schwab (SCHW) Launches Bitcoin And Ethereum Trading After Record Revenue
For readers, these moves raise questions about how crypto fits into a diversified approach, and what it means when a large, regulated broker supports direct digital asset trading. The combination of record financial results and expanded product breadth at Charles Schwab may influence how competitors respond and how retail investors choose where to keep their assets over time. For Charles Schwab, record quarterly revenue of US$7.1b, net income of US$2.8b for the quarter, and higher earnings per share sit alongside two big signals for investors: deeper engagement on the existing platform and a move to meet client demand for crypto within the Schwab ecosystem. Direct Bitcoin and Ethereum trading gives Schwab a product that already exists at rivals such as Robinhood, Coinbase, and Fidelity, but within a broader suite of brokerage, advisory, and banking services.
Bank of America Insanely Bullish on Micron. Sees Shares Rising 83% From Here.
Revenue landed at $41.46 billion, up 345.72% year over year from $9.30 billion. GAAP net income was $28.24 billion, up 1,398.3%. Non-GAAP gross margin hit 84.9% (GAAP 84.6%, up from 37.7% a year ago), and non-GAAP diluted EPS of $25.11 topped the $20.28 consensus by 23.79%, the eighth straight quarterly beat. Micron’s fiscal Q3 2026 report gave the bulls plenty of ammunition.