Big Tech Earnings Momentum vs. Incoming CPI Catalyst
Another great corporate earnings report for big tech and the stock up after hours / pre-market, which looks to keep fueling the speculation, especially following a strong company quarterly earnings report from the big chip manufacturer. No one wants the FOMO (fear of missing out) of not getting in and missing out on the trade, but at the same time, no one wants to risk buying at the top and being stuck holding the bag. We traditionally think of retail, the little guy, doing so, but it is not only retail that can do that; the people at the head of these big finance firms are only human, and humans are led by emotions, desires, fear, and greed. Super Micro Computer (SMCI) Q4 FY26 Breakdown
Super Micro Computer (SMCI) reported its Q4 Fiscal Year 2026 results last night (August 11). The report showed a bottom-line beat paired with strong guidance, driving the stock up over 7% in after-hours trading:
Earnings Per Share (EPS): Reported $1.70 (non-GAAP), beating analyst expectations ($0.71–$0.96).
Revenue: Came in at $11.12 billion (up ~93% YoY), slightly missing expectations of ~$11.55B due to component shortages and shipping delays.
Gross Margins: Rebounded strongly to 17.6% (well above previous guidance) driven by enterprise customer growth and product mix optimization.
Order Backlog: Management highlighted robust demand with over $60 billion in new orders received.
Q1 FY2027 Guidance: Significantly above consensus, forecasting revenue of $14.5B–$15.5B and full-year FY27 revenue of $65B–$72B.
It is going to be interesting to see how it affects the overall tech sector today at US market open and how the Nasdaq (NQ) trades. Asian Markets Reaction
Asian stocks have taken it as risk-on for tech in the overnight Asian trade:
KOSPI Surges (+4% to +4.5%): South Korea led regional gains, driven directly by overnight tech earnings from Super Micro Computer (SMCI) and CoreWeave, which reassured markets that global AI hardware demand remains strong. Memory giants Samsung Electronics (+7.5%) and SK Hynix (+6.8%) rallied aggressively.
Nikkei 225 Gains (+0.5% to +0.6%): Reopening after Tuesday’s market holiday in Japan, Tokyo equities logged modest gains, supported by semiconductor equipment makers and tech component suppliers following SMCI’s strong FY27 guidance.
Taiwan Taiex (+0.8%): Advanced alongside regional chipmakers, benefiting from hardware supply chain optimism.
Today's Macro Crossroads
We have to remember that US CPI data comes in today and it could well turn the narrative to a risk-off trade, or if inflation comes in significantly better than expected, it could fuel, along with the single-stock story, a risk-on trade for US tech today. If there is no surprise and it is in line with analyst expectations, we could see it going back to a micro Super Micro earnings story for the day.