AI Server Stocks Rally as Last Week's Selloff Reverses: Super Micro Jumps 4%, Hewlett Packard Enterprise Climbs 3%, Dell Edges Higher

• SMCI, HPE, and DELL rebounded 2-4% after last week's selloff tied to a Barclays downgrade over memory prices • SMCI named Mark Long as new CFO; Q4 revenue hit $11.12B, up 93.2%, slightly missing estimates • Gross margin guidance of 10.4-10.8% for Q1 FY2027 highlights thin AI server economics despite $65-72B revenue outlook AI server stocks bounced back after last week's selloff, which gave Hewlett Packard Enterprise (HPE) its worst week on record. Super Micro Computer (SMCI) led the rebound, up 4% to $32.87, followed by HPE up 3% to $57.01 and Dell (DELL) up 2% to $462.64. Broader tech ETFs IYW and QQQ each rose over 1.5%. The prior selloff followed a Barclays downgrade of Dell and HPE to Equal Weight, citing valuation concerns and potential margin pressure as memory prices normalize. Super Micro Computer named Mark Long, a former storage-industry finance executive, as CFO, replacing David Weigand. The move comes as the company scales its rack-scale AI server business on thin margins. Q4 FY2026 revenue reached $11.12 billion, up 93.2% year-over-year but slightly below the $11.56 billion estimate; founder Charles Liang called the miss a timing issue tied to customer delays in power, cooling, and networking. GAAP gross margin improved to 17.5% from 9.5% a year earlier on a better enterprise mix, but Q1 FY2027 guidance of just 10.4-10.8% underscores thin AI server economics. The company generated $722 million in free cash flow in Q4, while inventory rose to $12.9 billion ahead of expected FY2027 growth; cash stood at $7.5 billion with net debt down to $1.2 billion. FY2027 guidance calls for revenue of $65-72 billion following over $60 billion in new FY2026 orders. Whether that backlog converts into cash under Long's leadership is a key question, as Dell and HPE shares remain tied to the ongoing Barclays valuation debate.