10/30/24 - $smci - Quick comment on mkt implications10/30/24 :: VROCKSTAR :: NASDAQ:SMCI
Quick comment on mkt implications
- trick, no treat for smci
so here's the treat ex. scmi...
- an nvda top 5 customer has implications for nvda that probably keep it in a short-term holding period (upside "capped" vs. other mag 7 that report e.g. meta and msft - beats - tonight)
- there is SO much demand for nvda chips that even if a top 5 drops out, u guys realize msft, meta, amzn, googl, elon... will take 100% of that demand
- so what happens here is that the mkt will probably "overly" reward a meta or msft beat bc the flows/ implications of index higher rotate less incrementally to nvda and chips (even tho you should be buying tsm, avgo as well as nvda)... and to the mega/ googl/ msft complex. this means index higher.
thought it's important to mention.
V
MS51 trade ideas
IS SUPER MICRO COMPUTERS ($SMCI) FINALLY BOTTOMING?! IS SUPER MICRO COMPUTERS ( NASDAQ:SMCI ) FINALLY BOTTOMING?!
3 REASONS WHY:
1⃣ We have DIVERGENCE on the Weekly Chart
2⃣ It's almost a "High Five Setup"
3⃣ Take a BREAK and find out by watching. 👇
Stay tuned for more!🔔
Like ❤️ Follow 🤳 Share 🔂
Will Super Micro finally get back on track after the insane negative sentiment and news articles?!
Not financial advice.
Incoming 40% correction for Super Micro Computer, Inc.On the above 4 day chart price action has rallied 270% since January. And 3000% !!! since June 2022. It is somewhat unfortunate to see so many long ideas at the moment.
Motley Fool June 30th:
“1 Top Artificial Intelligence (AI) Stock to Buy Before It Soars 70%, According to Loop Capital”
“Loop Capital thinks Supermicro is going to $1,500”
Madness.
Why bearish?
Broken market structure. It is very clear to see, price action has broken the last higher low AND confirmed it as resistance. You can see this more clearly on the daily chart below.
Double top bearish divergence. On the 3 week chart below price action prints a RSI lower high (red arrows) with a higher high in price action. On this time frame an important trend shift is indicated.
Is it possible price action continues to rise? Sure.
Is it probable? No.
Ww
1 day broken market structure
3 week bearish divergence
SMCI due for a run?With earnings roughly 24 hours away, SMCI could be worth a watch.
They will often drop around earnings and then put on a nice run, but with the RSI and MACD both looking like they are at a reasonable area as well as the crazy ongoing demand for chips SMCI might be worth a watch.
I'll probably take a punt on it, but with a super tight stop loss in case it heads downwards. Could use a conditional buy order to enter on a turn-around trail. eg if it goes up x% then buy.
Either way, looks like some upside if they can sort out their issues.
Earnings In 2 WeeksI think this one could run -
1. Looks like we about to get a buy rating on the weekly prior to earnings.
2. The volumne gap goes all the way up to $75
3. Open gaps up around $51, $66, and $85.
4. Looks like an inverse head and shoulders.
5. Will start slowly adding lotto calls
6. 11/06/2024 after market ER?
7. Perhaps they fix their 10k filing
8. Short squeeze imminent?
9. I would love it to get to $40-$44 before buying (may start adding this week despite)
Lemme know what you think - GLTA.
Riding the AI WaveSuper Micro Computer is building strong bullish momentum, with a gap forming at the $45.00 level. A break through the $67.10 resistance level would confirm further upward movement, pushing the stock toward the daily resistance at $101.40, and eventually the weekly resistance at $122.45. With a favorable 6.21 risk-to-reward ratio, this trade offers a compelling opportunity to capture significant upside while maintaining a stop-loss at $35.70 to manage risk.
As the demand for high-performance computing, AI, and cloud infrastructure continues to grow, SMCI’s leadership in these sectors strengthens its bullish case. The company’s consistent innovation in server and data center solutions positions it well to capture future growth, supporting its trajectory toward the $122.45 target.
NASDAQ:SMCI
$SMCI Sneaky MOVERNASDAQ:SMCI has lots of size buyers coming in for this weeks expiration. The stock has has tremendous technical damage and is just drifting. The buying is indicating that someone knows something that retail doesn’t. Technically, if it can get above the supply at 149, we can see a spike to 50.61 with is last weeks highs and this current months highs. Trade this name with caution.
SMCI at a Critical Support: Will Buyers Return?In the daily time frame, SMCI is approaching a key support zone, highlighted in green. This area previously acted as strong resistance, with several attempts to break above it. Although the price hasn’t returned to this zone yet, I believe once it does, buyers could step in again. This level has proven significant before, and if the price revisits this support, it could present a potential buying opportunity. Keep an eye on this zone, as it may signal a shift in momentum if buyers come back. This version reflects that the price hasn’t yet revisited the support zone.
SMCI: Stock Split with Chart UpdateSMCI had a stock split, so I have to update this chart.
Light Fundamental:
It is a stock called SMCI (or Super Mico Computer). It is a US company that makes super powerful computers and servers. The world needs servers to help run things like big websites, apps, and AI. The stock price fell by half. So, it is selling at a discount for what it is really worth. So, it is a good chance to buy it.
Technicals:
Gartley-like pattern
diagonal support
engulfing bullish pattern with d3 volume and volume confirmation
a-b-c completion at a 78.2% fib pullback
Entry is above the weekly engulfing bullish candle at 475.44.
Target is, tentatively, 1500.
Note: preparing for either an election rally or a Christmas rally in stocks
50 and over a new start of consolidation with a breakout Macd is approaching 0, still higher, and other candles are continuing. There is no sign of fade or slowdown; it is just ready to distribute. I am still very bullish based on technicals, price sentiment, and value. With this still priced low, I could see 50-60 in the short term. Stochastics are not high, either. They will reset, but I don't think it is likely yet.
Super Micro Computer (SMCI): Time to buy in after a -70% drop!Since our first analysis a while ago, we've been inching closer and closer to our target area on $SMCI. Since then, we've seen a price drop of 40%, which is far from irrelevant, with the stock retracing nearly 70% from its peak. We're witnessing a clear and recurring pattern here—what we call the "staircase to hell." Each push to a level has been met with rejection, which is exactly why we see a buying opportunity forming.
We are now making our first bid here as a market entry. This is intended to be a swing trade that we plan to carry into 2025, with a target of reaching previous highs again. Therefore, we're not worried about getting a "perfect" entry within 1-2% but instead setting a DCA bid a bit lower for an optimal position if NASDAQ:SMCI comes down further.
Below the market entry, there's an important Fibonacci cluster that combines the 200% target of Wave C, the 78.6% retracement of Wave (2), and a target for Wave ((v)), all aligning well. With these multiple levels coinciding, there's a strong possibility we will see the price reach this zone. If so, we’ll place another bid to buy more shares.
If NASDAQ:SMCI manages to flip the first resistance, we expect it to move up quickly. As we always say, patience is the key to successful swing trading—don’t let greed or fear cloud your decisions 🤝.
SMCI thin structure retracement1. NVDA's large 100k server order
2. Nobody compare's to their pace of delivery
3. Never got the chance to recover from the Aug and Sept rally
4. NVDA isn't the only one making the 100k orders. There are other companies besides NVDA ordering servers and infra from them all over the world.
SUPERMICRO. BUY WHEN THERE'S BLOOD IN THE STREETS.The worse the market - the greater the opportunity to profit it gives.
This seems to be the credo of contrarian, or counter investing.
Nathan Rothschild, a 19th-century British financier and member of the Rothschild banking family, is credited with saying:
“The time to buy is when there’s blood in the streets.”
Whether or not Rothschild actually uttered this famous line, it reveals an important truth about betting against market psychology. When prices are falling and markets are shaky, bold contrarian investing can yield big returns.
Key Takeaways
👉 Contrarian investing is a strategy that goes against prevailing market trends or sentiment.
👉 The idea is that markets are subject to herd behavior, fueled by fear and greed, which causes markets to periodically overprice or underprice.
👉 “Be fearful when others are greedy, and be greedy when others are fearful,” said Warren Buffett. This phrase embodies a similar philosophy, perhaps just in a slightly more succinct form.
Historically, market panics can be a great opportunity for cheap investing.
Most d̶u̶m̶b̶a̶s̶s̶ ̶ people want to have ONLY WINNERS in their portfolios, but as Warren Buffett warned, “In the stock market, you pay a very high price for a happy consensus.”
In other words, if the crowd is unanimous in agreeing on an investment decision, it’s probably NOT A GOOD ONE.
Going Against the dumbass Crowd
Contrarians, as the name suggests, try to do the opposite of the crowd. They get excited when a good company’s stock price drops sharply and unfairly. They swim against the tide and assume that the market is usually wrong at both extreme lows and highs. The more prices fluctuate, the more delusional they think the rest of the market is.
Contrarian investors believe that people say the market is going up when and why they are fully invested and have no further buying power.
At that point, the market is peaking and should be going down. When people predict a decline, they are already sold out, and at that point, the market can only go up.
For this reason, contrarian thinking is great for figuring out whether a particular stock has actually bottomed.
Bad times build wealth
😬 Contrarian investors have historically made their best investments during times of market turmoil. During the 1987 crash (also known as Black Monday), the Dow Jones Industrial Average in the US fell 22% in one day.
😬 During the 1973–74 bear market, the market lost 45% in about 22 months.
😬 The September 11, 2001 attacks also caused the market to fall significantly.
I AM CERTAINLY NOT AN ADVOCATE OF VIOLANCE
But the list of facts goes on and on. And these were the times when contrarians found their best investments.
😬 The 1973–1974 bear market gave Warren Buffett the opportunity to buy a stake in the Washington Post Company, an investment that subsequently rose more than 100 times its purchase price. That’s before dividends.
Buffett said at the time that he was buying the company’s shares at a deep discount, as evidenced by the fact that the company could “sell (the Post’s) assets to any of 10 buyers for at least $400 million, probably considerably more.” more." Meanwhile, the Washington Post's market cap at the time was just $80 million. In 2013, the company was sold to Amazon CEO and founder Jeff Bezos for $250 million in cash.
😬 After the 9/11 attacks, the world stopped moving for a while. Let's say you were investing in Boeing (BA), one of the world's largest commercial aircraft makers, during that time. Boeing's stock bottomed out just a year after 9/11, but since then, it has more than quadrupled in the next five years. Clearly, while 9/11 may have temporarily soured market sentiment on the airline industry, those who had done their research and were willing to bet on Boeing's survival were well rewarded.
😬 Sir John Templeton ran the Templeton Growth Fund from 1954 to 1992, when he sold it. For every $10,000 invested, into an A-share fund in 1954 would have grown to $2 million by 1992 with dividends reinvested, or an annual return of about 14.5%.
Templeton was a pioneer of international investing. He was also a serious contrarian investor, buying into countries and companies when, according to his principle, they reached their "POINT OF MAX. PESSIMISM."
Four years later, he sold the stock for a huge profit.
The Risks of Contrarian Investing
While the most famous contrarian investors bet big money, went against the grain, and succeeded, they also did a lot of research to make sure the crowd was wrong.
So when a stock takes a big dive, it doesn't prompt the contrarian to place an immediate buy order, but to figure out what caused the stock to fall and whether the price drop is justified.
Knowing which distressed stocks to buy and sell once the company recovers is a major concern for contrarian investors. This can lead to stocks that deliver much higher returns than usual. However, being overly optimistic about hyped stocks can have the opposite effect.
Final Points.
👉 While each of these successful contrarian investors has their own strategy for evaluating potential investments, they all have one thing in common: they let the market give them deals instead of chasing them.
👉 What's next for Supermicro stock? Who knows, who knows..
It's very individual and depends on what you're looking for... opportunity or denial.
👉 The current 6-month return on investment in Supermicro stock is -58.44% - a pretty rare occurrence for SMCI.
This has never happened before.. even in times of WFC, Covid-19 or smth else.
Indeed, several times 6-months returns were quite negative for SMCI. Then Supermicro shares doubled or even tripled in price in just several next years.
What principle and style of investing do you adhere to?! Please share your comments and feedback in the box below! 👇👇
SMCI: Are we back in business??Super Micro Computer just broke over the LH 1 trendline holding since July 15th and is about to turn bullish again on the 1D technical outlook (RSI = 54.296, MACD = -2.380, ADX = 24.033). Coming off a double bottom (DB), the only resistance left before the bullish trend is resumed, is the 1D MA50 (untested since July 17th). The 1D RSI already made its breakout over its own R level. When the 1D MA50 breaks, target the LH2 trendline (TP = 78.00).
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Super Micro Computer Stock up 16% Amidst AI DemandSuper Micro Computer Inc. (NASDAQ: NASDAQ:SMCI ) has recently been thrust back into the spotlight after announcing a surge in shipments of its advanced graphics processing units (GPUs). These GPUs, driven by the ongoing artificial intelligence (AI) revolution, are powering some of the largest AI factories globally. The company revealed that it has deployed over 100,000 GPUs utilizing its proprietary liquid cooling technology, designed to help AI data centers cut down on energy costs while improving operational performance. The news has given NASDAQ:SMCI a fresh momentum, with the stock soaring 16.37% as of Monday’s trading.
AI Boom Fueling Growth
The ongoing boom in AI is playing a pivotal role in NASDAQ:SMCI ’s resurgence. The company, which supplies critical server infrastructure used for AI model training, data storage, and large-scale cloud operations, has been a significant beneficiary of the rising demand for GPU-powered AI systems. Partnering with Nvidia (NVDA), NASDAQ:SMCI leverages Nvidia’s cutting-edge $30,000 chips to service the growing AI sector. The company's ability to deploy more than 100,000 GPUs per quarter could translate into billions of dollars in potential revenue.
Additionally, NASDAQ:SMCI 's latest innovation—its direct liquid cooling products—has opened new avenues for reducing the overall energy footprint of data centers. CEO Charles Liang noted that these solutions are already being adopted by "state-of-the-art" AI factories, further solidifying the company’s standing in the green technology landscape.
Despite this growth, NASDAQ:SMCI has faced its share of challenges. The company is currently about nine weeks behind on filing its annual report, citing ongoing assessments of its internal controls over financial reporting. Furthermore, a recent investigation by the Department of Justice, following allegations of accounting manipulation by Hindenburg Research, caused shares to drop 12% last month. Still, with AI demand continuing to fuel orders, NASDAQ:SMCI ’s fundamentals remain strong.
Technical Outlook: A Bullish Flag in the Making?
From a technical standpoint, NASDAQ:SMCI is showing signs of a potential rebound after weeks of decline. The stock's 16% jump on Monday suggests that investors are starting to recognize the company’s growth potential once again. Currently, NASDAQ:SMCI is trading within a presumed falling trend channel, but with the latest bullish momentum, it appears ready to break out of this bearish pattern.
One of the most encouraging signs on the daily price chart is the early formation of a bullish flag pattern, a signal typically associated with the continuation of an upward trend. The stock has also avoided hitting overbought or oversold territory, as reflected in the Relative Strength Index (RSI), which is primed for further gains.
However, NASDAQ:SMCI is still trading below key moving averages (MAs), which serves as a point of caution for traders. A sustained move above these MAs could indicate a more stable reversal, suggesting that the stock might migrate from its current bearish trend into a more balanced state.
Outlook: Hope in the Midst of Uncertainty
While the stock remains down by over 50% from its March highs, the recent surge and new product innovations offer a glimmer of hope. If NASDAQ:SMCI can clear its regulatory hurdles and capitalize on the ongoing demand for AI infrastructure, the stock may continue to rise. The combination of fundamental strength in AI growth and the promising technical setup offers a compelling case for long-term investors.
The next key for investors to watch will be NASDAQ:SMCI 's ability to regain ground above its moving averages, solidifying the bullish reversal. If the bullish flag pattern plays out, the stock could see further gains as AI demand and liquid cooling innovation continue to drive its growth.
Supermicro and Fujitsu Collaborate on Green AI ComputingSupermicro stock (NASDAQ: NASDAQ:SMCI ) Shows Bullish Potential Despite Stock Dip
Supermicro, Inc. (NASDAQ: NASDAQ:SMCI ) and Fujitsu have recently announced a long-term strategic collaboration to develop cutting-edge green AI computing technology and liquid-cooled datacenter solutions. This partnership, which will focus on future AI, HPC, and next-generation data centers, aims to provide more energy-efficient solutions for the growing demand in AI and data infrastructure while minimizing environmental impact.
Strategic Collaboration Overview
The collaboration includes developing platforms using Fujitsu's upcoming **Arm-based “FUJITSU-MONAKA” processor**, targeted for release in 2027. This processor will be designed for high-performance computing while also being energy-efficient. Supermicro’s liquid-cooling technology will play a vital role, helping to address the challenge of rising data center power consumption and environmental concerns. Together, the companies aim to create green IT architectures that align with global sustainability goals.
Supermicro CEO Charles Liang stated, “These systems will be optimized to support a broad range of workloads in AI, HPC, cloud, and edge environments.” The companies’ combined technical capabilities are expected to enhance performance across several industries while reducing the ecological footprint of data centers.
The liquid-cooled systems, which Supermicro is already leading in, will be central to this effort. The companies aim to bring rack-scale liquid cooling solutions that offer not just high-performance processing, but also **green AI infrastructure** that meets the global demand for scalable, energy-efficient AI and computing platforms.
Strengths and Future Outlook
Supermicro has continued to position itself as a leader in IT infrastructure. The company's focus on energy efficiency and green computing aligns with broader market trends, especially as environmental concerns become central in technology development. The new FUJITSU-MONAKA processor promises to deliver excellent performance and power efficiency, crucial for AI workloads and data centers of the future. This processor, using cutting-edge 2-nanometer technology, will strengthen Supermicro’s competitive edge in both the AI and broader HPC market.
In addition, the partnership will extend globally with the inclusion of Fsas Technologies Inc., a subsidiary of Fujitsu, providing AI platforms based on Supermicro's GPU servers. This move will allow both companies to offer top-tier AI solutions on a global scale, aiding enterprises and data center operators in leveraging AI-driven digital transformation (DX).
Technical Analysis
As of the time of writing, NASDAQ:SMCI stock is down 1.07%, but the technical indicators point to a potential bullish reversal. The daily chart reveals the formation of a bullish flag pattern, which signals a potential upward breakout. A move above the $75 pivot would confirm this bullish momentum and could trigger a substantial rally in the stock, given the broader AI and tech stock trends this year.
The RSI (Relative Strength Index) currently sits at 38, which indicates that the stock may be in oversold territory. This could present an excellent buying opportunity for investors who believe in the long-term potential of Supermicro (NASDAQ: NASDAQ:SMCI ), especially with its involvement in green AI and liquid-cooling technologies.
Conclusion
Supermicro’s collaboration with Fujitsu marks an important step forward in creating a sustainable and high-performance AI infrastructure, essential for the future of data centers. Despite the stock’s current dip, the technical analysis suggests a potential bullish reversal on the horizon, fueled by favorable industry conditions and the company’s focus on innovative, green technologies. Investors might view the RSI level as an opportunity to enter or accumulate positions, given the long-term promise of this partnership and the growing demand for AI-driven solutions.
Supermicro is well-positioned to benefit from both its focus on sustainability and the growing demand for AI infrastructure, making it a stock to watch closely in the near term and beyond.