Super Micro Computer Inc SMCI is gearing up to unveil its fourth-quarter earnings on Tuesday. With Wall Street projecting $8.10 in earnings per share and $5.29 billion in revenues, the company’s performance will be under scrutiny as it reports after market hours.
Prime on the AI wave, the company’s stock has surged 72.33% over the last year. In a year-to-date comparison, Super Micro has outshined AI titan Nvidia Corp NVDA, boasting a 114.18% increase over Nvidia’s 102.84% gain.
Market Sentiment and Pre-Earnings Environment
Despite the impending earnings report, the stock is currently tracking a pronounced bearish trajectory, with its share price lingering below the 5, 20, and 50-day exponential moving averages. Despite this bearish sentiment, there remains a palpable influx of buying activity, potentially signaling a bullish turn on the horizon.
Chart created using Benzinga Pro
Currently priced at $624.74, the stock sits below the 8-day simple moving average of $663.54, signaling a bearish outlook. Furthermore, it remains positioned under the 20-day simple moving average of $758.68 and the 50-day simple moving average of $806.00, reinforcing the bearish stance.
The 200-day simple moving average, at $662.70, further accentuates the bearish sentiment, given the current trading price of $624.74.
Chart created using Benzinga Pro
Technical indicators, including the Moving Average Convergence Divergence (MACD) at -58.01 and the Relative Strength Index (RSI) at 30.89, paint a bearish picture, although hinting at a possible bullish reversal with the RSI nearing oversold levels.
The Bollinger Bands (25) showing a range between $584.10 and $975.83 also corroborate the bearish outlook, with the stock residing beneath the lower band. Yet, the oversold RSI and upward pressure could signify a forthcoming reversal.
Read Also: What’s Going On With Super Micro Stock?
Analysts: Super Micro Poised for Over 10% Upside
Ratings & Consensus Estimates: Currently rated as a Buy by analysts, Super Micro stock holds a consensus price target of $999.92. Recent analyses from Wedbush, Susquehanna, and Nomura project a 10.48% upwards potential for Super Micro stock, with an average price target of $685.
SMCI Price Action: With a closing price of $608.83 on Monday, Super Micro stock dipped by 2.53%.
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