The Rise of AI in Super Micro’s Realm
Super Micro Computer Inc (SMCI) is poised to release its fourth-quarter earnings, with forecasts of $8.10 per share and $5.29 billion in revenues. The company’s stock has soared by 72.33% over the past year, outpacing even the AI titan Nvidia Corp (NVDA).
The Bear Lurks As Q4 Approaches
Despite upcoming earnings, a bearish trend looms over Super Micro’s stock. It currently trades below key moving averages – the 5, 20, and 50-day EMAs. Yet, there’s a glimmer of hope amidst this gloom – signs of notable buying pressure that may signal future bullish movements.
Chart created using Benzinga Pro
As the stock price sits at $624.74, trading below the 8-day SMA of $663.54, the bearish alarm rings loud. The 20-day SMA at $758.68 and the 50-day SMA at $806.00 compound this bearish sentiment, with a stark comparison to the 200-day SMA at $662.70, painting a vivid image of the stock’s downward spiral.
Chart created using Benzinga Pro
Technical readings like MACD at -58.01 and RSI at 30.89 whisper tales of further bearish waves, though hope flickers with a potential bullish reversal as RSI nears oversold levels. Bollinger Bands forecast a range between $584.10 and $975.83, underscoring the stock’s bearish stance.
Analysts See Light Amidst the Gloom
Analysts project a bright spot with over 10% upside for Super Micro’s stock. Consensus opinion rates it a Buy, setting a price target of $999.92. Analyst ratings from Wedbush, Susquehanna, and Nomura echo this sentiment, touting a 10.48% upside with an average $685 price target.
Super Micro stock wrapped up Monday’s trading at $608.83, marking a 2.53% decline.
