Super Micro Computer (SMCI: NASDAQ)Super Micro Computer (SMCI), a developer and manufacturer of high-performance server and storage solutions, is experiencing substantial growth and profit acceleration.
The company's energy-efficient servers are benefiting from the AI boom, with exceptional demand outpacing expectations. To address this, SMCI is planning a 25% increase in production capacity.
The bullish outlook on SMCI sets an entry target above $248.00-$250.00 and an upside target at $410.00-$420.00.
4SMCI trade ideas
Super Micro Computer Inc. Moving Towards UptrendSuper Micro deploys the world’s leading semiconductor technology with its line of servers, services and accessories and the shift to next-generation technology, including AI, resulted in better-than-expected guidance. The news has the shares up another 30% extending the rally to new highs and taking the market ballistic.
Based on the AI outlook, this trend is in its early stages and could easily see this company double or triple in valuation. Among the largest growth opportunities in the AI industry will be infrastructure and services, each worth billions in annual spending.
Super Micro's Tepid Quarter, Issues Guidance
Super Micro had a tepid quarter regarding the analysts' expectations, bringing in only $1.28 billion. That is a decline of nearly 6% year-over-year (YOY) in line with the consensus figures, although earnings were weak. The company widened the gross margin by 210 basis points compared to last year, but it was less than expected and left the adjusted EPS at $1.63. That’s up from the prior year, but was eight cents shy of consensus and would be a bearish catalyst if not for the guidance.
The company’s tepid second-quarter results are due to supply chain issues that were resolved later than the analyst anticipated. This is evidenced by the guidance, which was reaffirmed for the year which ends with the next report. The takeaway is that the fourth-quarter guidance is well above the MarketBeat consensus and suggests that momentum could carry into the first-quarter period and the second half of calendar 2023.
Institutional Activity Drives Super Micro Higher
The institutional activity in Super Micro can tell you a lot. The institutions own about 73% of the stock and have been buying on balance. The activity includes rotation as profit-taking occurs but ramps higher every quarter. Assuming this trend continues, the institutions will increase their holdings to roughly 75% by the end of the second quarter of 2023.
Technical Analysist: Super Micro’s Uptrend
Super Micro is in an uptrend that gains strength. The current move is supported by the outlook and aided by a relatively high short interest that could continue to fuel the rally. The company has evident momentum and a clear position within the industry, so it should continue to build support. The price action may move sideways at this point or even pull back some before moving higher, which offers a buying opportunity. One target for support is near the $120 level, but a deeper pullback is possible if the short sellers pile back in.
Price Momentum
SMCI is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
$SMCI Ready for Flat Base Breakout?I have an alert set on that resistance line where I’ll look to go long if the market also looks good. There is a big gap from Aug 9 that I think can be filled. However, there is also some resistance apparent around $297 looking back at the 2 big red bars. It looks to me that NASDAQ:SMCI found support at the All Time High AVWAP. See notations on chart.
Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
🟩 4 True Market LeadersEven though I am 100% cash, i am carefully looking at some of the True Market Leaders (TMLs) that I have traded recently. These act great during the correction and could provide an actionable buy points.
Here is the list of names.
NASDAQ:SMCI
NASDAQ:NVDA
NASDAQ:META
NYSE:ANET
PRO TIP:
I always use 2 alerts - one which is above the pivot and one underneath. I call the first one
✅ GOOD ACTION
and the second one
❌ BAD ACTION
I put these alerts on anywhere between 15-30 stocks. And watch how the market reacts. What I want to see is a bunch of ✅ GOOD ACTION alerting me. This shows me that the market is worknig well, when I get a bunch of ❌ BAD ACTION, I know the makret it turning.
SMCI Super Micro Computer Options Ahead of EarningsAnalyzing the options chain and the chart patterns of UPWK Upwork prior to the earnings report this week,
I would consider purchasing the 330usd strike price Calls with
an expiration date of 2023-8-11,
for a premium of approximately $24.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
SMCI Entry, Volume, Target, StopEntry: with price above 270.18
Volume: with volume greater than 3.51M
Target: 325.01 area
Stop: Depending on your risk tolerance; Based on an entry of 270.19, 251.92 gets you 3/1 Reward to Risk Ratio.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
SMCI: Bullish Flag, Not Confirmed (89%)SMCI showing a bullish flag on the Weekly chart.
Not confirmed.
Pros:
1- PPS above 50MA and 200MA
2- RS above 0 and climbing
3- R/R ratio above 5
4- 250RSI above 50 and climbing
5- 50MA above 200MA
6- Both 50MA and 200MA ascending
7- Golden cross circled in April 2020
8- Post formed with volume
9- Descending volume during Flag forming
10- Ascending ATR, more volatility
Cons:
1- Figure is not confirmed
2- No break out yet
If confirmed, target price is 501,52$
Again, stay humble, have fun, make money!
MAAX!
Pullback Buy in SMCISMCI is a market-leading stock. As a key player in the AI space, Super Micro is currently an institutional favorite.
Shares tripled in 45 days between April and June, and the stock is finally pulling back.
This dip to the 21-day moving average is a buyable pullback. I would use an 8-10% stop to keep risk tight.
SMCI - It's been a great ride, but all good things.....SMCI has had a great run. Despite Covid and despite the great 2022 sell-off, it has continued to climb. However, I now see it reaching the end of its third wave and sadly, I'm seeing a few years of decline. Such a great performer when all else was falling, I will miss it for the foreseeable future.
SMCI Parabolic moveSMCI has been on a parabolic bullish move since Start of 2022
It always makes a new highs then establish it as a resistance level , test it multiple times then move on to the new breakout
Right now it is on a new resistance level i.e 118 and it can come back to test either 104 or 94 support levels. After retesting 104 or 94 it will make another bull move making a new high
Wait till Support level retesting and then make an entry
PS : its currently forming a triple top pattern which is not complete yet . if completed then there is a slight chance that it will definitely come back to 94-96 levels for the previous strong support retest
SMCI in uptrend with acceleration perspectiveSMCI Super Micro Computer Non-GAAP EPS of $3.26 beats by $0.23, revenue of $1.8B beats by $20M.
It confirms the good business run and momentum for its products, despite overall business decline in the sector.
It records a rising trend both in revenue and EPS and the valuation looks very attractive. PE 8.7x, Revenue up 59%, ROE 38% EBIT mrg 10% and the stock is above its 200ma and it seems that the demand for the stock is increasing.
02/08/2023 SMCI short opportunity - Hi traders,
It appears that SMCI presents a favorable opportunity for shorts over the course of multiple days.
reasons
1. $92-$95 is a huge selling area.
2. The presence of a Gravestone Doji candle in today's market suggests a potential short-selling opportunity. This pattern often indicates that the sellers have taken control of the trend during the intra-day trading period.
3. Volume is trending down, which possibly means buyer exhaustion.
4. The underlying fundamentals seem to support this view, as the bond yield curve has contributed to a decline in the market today. Furthermore, the trend of major indices such as the SPY and QQQ has shifted to a bearish outlook as of today.
*The stock itself got a great analyst rating and the company is in the growth stage. I am expecting it may or may not, retract to T1 trendline.