Highflying data-center hardware specialist Super Micro Computer has put investors on a roller-coaster 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 it went on a tear after the company significantly raised its sales and earnings guidance for the December quarter on Jan. 18. It noted strong demand for its data center and AI systems.
Super Micro stock continued to rise after its beat-and-raise earnings report on Jan. 29. It soared to a record high of 1,229 on March 8. But it pulled back on news of a dilutive stock offering.
On Tuesday, SMCI stock surged 10.6% to close at 976.30. That was after Loop Capital reiterated its buy rating on Super Micro and hiked its price target to 1,500 from 600.
SMCI Stock Up On Bullish Report
"Our work suggests business remains very healthy, and we're anticipating robust March-quarter results and a strong June-quarter guide," Loop analyst Ananda Baruah said in a client note.
Super Micro is benefiting from strong sales of server computer systems to support generative artificial intelligence, he said.
However, on the stock market today, SMCI stock fell 1.7% to close at 960.08. But in a positive sign, it has found support above its 50-day moving average line. The 50-day line for Super Micro is at 943.34, according to IBD MarketSurge charts. Super Micro also closed above its 10-week moving average of 956.70.
SMCI stock is on two IBD stock lists: Big Cap 20 and Tech Leaders.
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