• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

SMCI stock price analysis as Supermicro forms risky H&S pattern

by June 26, 2025
by June 26, 2025

Super Micro Computer (SMCI) stock price rose on Wednesday this week as investors moved back to artificial intelligence (AI) companies. SMCI jumped to a high of $46.6, its highest point since May 16, and 70% above its lowest level this year. 

AI stocks are bouncing back

Super Micro Computer, also known as Supermicro, is a top company in the semiconductor and server industry. It manufactures products like the H14 servers, X13 Petascale All-Flash Systems, SuperBlade and MicroBlade, and BigTwin and FatTwin.

Its products are used by some of the biggest companies in the US and other countries. Notable companies that use its solutions are xAI, CoreWeave, NVIDIA, Apple, and Amazon. 

Supermicro stock price rose this week as investors moved to AI stocks. NVIDIA, the biggest player in the industry, surged to a record high as investors predicted that its top clients, like Microsoft, Meta Platforms, and Google, were still investing in data centers.

The rally accelerated after Micron published strong financial results. Its revenue jumped to $9.3 billion from $6.8 billion in the same period last year. It reported a net income of over $1.89 billion. 

Micron’s results provided further evidence that the AI bubble had not burst, as some analysts had predicted. It is a sign that other companies in the area are doing well. 

Read more: Top 4 reasons why Supermicro’s bond offering is a positive for SMCI shares

Super Micro Computer business is doing well

The most recent results showed that Supermicro’s business was doing well but facing margin challenges. Its revenue rose by 19% to $4.6 billion, while its gross margins dropped by 590 basis points to 9.7%. 

Supermicro’s growth was driven by its server and storage systems business, whose revenue rose by 21% to $4.49 billion. Its subsystems and accessories business deteriorated, with the revenue falling by 7%.

Wall Street analysts anticipate its upcoming earnings to show that its revenue rose by 10% to $5.8 billion, while its EPS fell from 62 cents to 44 cents. For the year, the estimate is that the revenue rose by 47% to $22.1 billion, followed by $29.6 billion in the next financial year. 

Supermicro’s annual earnings per share are expected to drop to $2.08 and then rebound next year. 

These earnings forecasts reflect the fact that Super Micro Computer downgraded its estimates in the last quarter. It lowered its revenue guidance from between $23.5 billion and $25 billion to between $21.8 billion and $22.6 billion. This lowered guidance explains why the stock retreated after earnings. 

Wall Street analysts are largely neutral or bearish on the stock. Barclays analysts downgraded the stock from overweight to equal-weight, while JPMorgan slashed from overweight to neutral. The average SMCI stock price forecast among analysts is $42.9, higher than the current $46.6.

SMCI stock price technical analysis

Supermicro stock chart | Source: TradingView

The daily chart shows that the SMCI share price peaked at $66.40 earlier this year and then dropped to $46.60. It has moved slightly above the 50-day and 200-day moving averages, which is a bullish sign.

The stock has formed a head-and-shoulders pattern, a popular bearish reversal sign. Therefore, the stock may resume the downtrend soon, and possibly retest the support at $30. 

The post SMCI stock price analysis as Supermicro forms risky H&S pattern appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Eli Lilly seen as the stronger bet amid escalating competition with Novo in India
next post
Australia, New Zealand top global rankings in per capita cocaine use: UN report

Related Posts

Opendoor stock plunges 21% after weak forecast: could...

August 7, 2025

Why Upstart stock tanked on Q2 earnings and...

August 7, 2025

GLD ETF analysis: is this gold fund on...

August 7, 2025

Asian markets open: Nikkei flat on US chip...

August 7, 2025

Europe markets open: Stocks rise; Maersk Q2 profit...

August 7, 2025

SoftBank posts strong quarterly profit of around $2.9B...

August 7, 2025

Trump and Putin to meet next week; White...

August 7, 2025

Is America really getting rich off tariff revenue?

August 7, 2025

Israel’s Leviathan gas field secures historic $35B export...

August 7, 2025

Trump’s tariff gamble on chips and drugs could...

August 6, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • What Families Gain at the Dinner Table

    August 7, 2025
  • Superman, Sneaking Snacks into Movies, and the Mystery of Social Order

    August 7, 2025
  • How Telematics Is Reshaping Transportation

    August 7, 2025
  • What Families Gain at the Dinner Table

    August 7, 2025
  • Would Superman Bring Coffee to the Movies?

    August 7, 2025
  • Opendoor stock plunges 21% after weak forecast: could more downside be ahead?

    August 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,114)
  • Editor's Pick (210)
  • Investing (185)
  • Stock (1,413)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

RBI turns neutral after sharp rate cut;...

June 7, 2025

Europe markets open: stocks eye higher start;...

April 28, 2025

China’s exports surge amid waning frontloading demand

July 14, 2025