American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

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

by admin June 26, 2025
June 26, 2025
SMCI stock price analysis as Supermicro forms risky H&S pattern

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
FacebookTwitterGoogle +Pinterest
previous post
Bayer share price is rising: does it have more upside?
next post
Bayer share price is rising: does it have more upside?

Related Posts

Gold Price Reaches New All-time High of Over...

April 4, 2024

Jindalee Lithium Limited (ASX: JLL) – Trading Halt

July 4, 2024

USD/JPY forecast: death cross forms ahead of Fed,...

September 16, 2024

BNB price analysis: calm before the storm for...

May 11, 2025

Top FTSE 100 shares to watch: Vodafone, ICG,...

May 17, 2025

BuzzFeed stock analysis: falling website traffic is a...

October 27, 2024

A Look at Historical Copper Prices (Updated 2024)

June 29, 2024

SOXL ETF analysis: here’s why this semiconductor fund...

February 27, 2025

Zodiac Gold

August 5, 2024

Stoxx 50 index forms inverse H&S pattern ahead...

December 9, 2024

    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.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved