This is SMCI, Super Micro Computer, a company that designs and builds an environmentally-friendly and energy-saving portfolio of servers, storage systems, switches, software, along with global support services.
Reportedly, it dropped 23% due it not giving preliminary results when announceing date for its next quarterly earnings report. Clearly this sets of speculations that the company is not doing well. Or could it just be market manipulation?
$QQQ $SPY This week📉 vs. Next week.📈
— Jurabek🎯Sniper Trades (@StockSniperPro) April 20, 2024
Big money playing “IN & OUT & IN”
Nobody knows where is the dip except them.$TSLA $NVDA $AMD $SMCI $AAPL $MSFT $AMD $GOOG $NFLX $LLY pic.twitter.com/puJ9MRRbju
The chart above is too familiar to us in crypto. 23% drop is nothing. Would the price climb back up?
I personally has no doubt that it would climb back up at some stage. This is given that we are just at the start of the AI boom and SMCI is a key player in this ecosystem. This company has benefited from hyperscale cloud service providers investing in servers for artificial intelligence applications.
Incidentally, it was also added to the S&P 500 last month.
It was clearly overheated, and people needed to take profit and this speculation of poor earnings performance just fuel the decision.
Would it go down to the lows of $200-$300, which is the next support after the $600 range? I cannot rule that out.
In fact, it was suggested by Yurumazu that the mania phase is over.
NVIDIAはまだ良いが、SMCI(スーパーマイクロコンピュータ)は完全にチューリップバブルチャート🌷 pic.twitter.com/j326HC5EhZ
— Emin Yurumazu (エミンユルマズ) (@yurumazu) April 20, 2024
But I also cannot rule out that people will start piling up SMCI if they see the potential of AI and the need for servers globally.
That is, we could be just in the Awareness phase.
Check them out: https://www.supermicro.com/en/
P/S: Clearly, this is not financial advice. Please do your own due diligence when investing.
Posted Using InLeo Alpha