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SMCI Stock Finds Key Level Support

High-flying data center hardware specialist Super microcomputer (SMCI) has taken investors on a rollercoaster ride in recent weeks. But for now, SMCI stock has found support at a key technical level.


SMCI stock ended 2023 at 284.26. But things went south after the company significantly raised its sales and earnings expectations for the December quarter on January 18. It saw strong demand for its data centers and AI systems.

Super Micro stock continued to rise after its Jan. 29 earnings report. It rose to an all-time high of 1,229 on March 8. But it pulled out after news of a dilutive share offering.

On Tuesday, SMCI stock rose 10.6% to close at 976.30. That was after Loop Capital reiterated its buy rating on Super Micro and raised its price target from 600 to 1,500.

SMCI Stock Up After Bullish Report

“Our work suggests business remains very healthy, and we expect robust results for the March quarter and strong guidance for the June quarter,” Loop analyst Ananda Baruah said in a client note.

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Super Micro is benefiting from strong sales of server computing systems to support generative artificial intelligence, he said.

However, in today’s stock market, SMCI stock fell 1.7% to close at 960.08. But it is a positive sign that it has found support above the 50-day moving average line. According to the IBD MarketSurge charts, the 50-day line for Super Micro stands at 943.34. Super Micro also closed above the 10-week moving average of 956.70.

SMCI stock is on two IBD stock lists: Big Cap 20 and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.


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