Nasdaq rises 1.05% as Super Micro jumps and SpaceX swings to profit
Key Facts
The Nasdaq Composite closed the October 21, 2026 session in New York up 1.05%, as appetite for AI-related stocks revived following results from SpaceX and Super Micro. The index added 278.04 points to finish at 26,702.86, according to Blooming Bit. Super Micro shares jumped 9.6% during the session after the company announced preliminary revenue estimates that exceeded its previous guidance, according to Reuters. SpaceX shares closed up 7.8% after results showed it had swung to a profit from the year-earlier period. Super Micro's results also lifted rival stocks, with HPE shares rising 3.7%. Dell shares also gained 5.3% in the same session, according to the news agency.
Super Micro estimated revenue for the first quarter of its fiscal 2027, which ended on September 30, 2026, at between $18.5 billion and $19.5 billion. That compares with previous company guidance of between $14.5 billion and $15.5 billion, according to its business update. The preliminary range also exceeded the average analyst estimate of $15 billion, according to data compiled by Bloomberg. The company said revenue exceeded its previous guidance primarily because of "increased demand for AI platforms." The announcement covers preliminary results for a fiscal quarter that has already ended, compared with the revenue estimates the company had set before issuing this update.
The improvement in Super Micro's estimates extended to gross margin as well as revenue. The company estimated its first-quarter gross margin at between 12.0% and 12.5%, according to its statement. Its previous guidance for the same period had indicated a margin of between 10.4% and 10.8%. The company attributed the improvement primarily to "customer and product mix," explaining why the margin exceeded its earlier expectations. The business update thus combined sales above guidance, driven by demand for AI platforms, with improved gross profitability linked to the mix of customers and products the company sold.
SpaceX reported revenue of $14.6 billion in the third quarter of 2026, according to its filing with the U.S. Securities and Exchange Commission. Revenue rose 161% from $5.6 billion in the third quarter of 2025. Quarterly net profit was $4.4 billion, compared with a loss of $1.1 billion in the year-earlier period. The company said in the filing that its net result improved by $5.5 billion year on year, alongside the increase in revenue. Beyond the financial results, Reuters quoted Elon Musk as saying a merger of SpaceX and Tesla would be "a good idea." The comment added another catalyst for trading in the two companies during the session, alongside the impact of the earnings announcement.
The Nasdaq's rise followed Tuesday's session, which the index ended slightly lower, according to Investing.com. In that previous session, the Dow Jones rose 1%, before corporate disclosures supported Nasdaq gains in trading on October 21. Netflix shares bucked the upward trend in the latest session, closing down 5.3%. The decline followed revenue guidance that disappointed expectations, according to Investing.com, contrasting with investors' response to disclosures from Super Micro and SpaceX. Against the U.S. economic backdrop, the previous official reading of seasonally adjusted initial jobless claims was 199,000 for the week ended October 10, according to the U.S. Labor Department.
Super Micro's announced results remain preliminary pending completion of its financial closing procedures. The company said the financial information in its update was unaudited. The revenue and margin estimates are based on management's estimates for the completed fiscal quarter, according to the statement. These figures may be revised during the financial closing process, before full financial results are presented. Super Micro scheduled its call to review results for the first quarter of its fiscal 2027 for November 3, 2026.