SMCI suffers 23% drop: Is it market manipulation? Profit taking?

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 $SPY This week📉 vs. Next week.📈
Big money playing “IN & OUT & IN”
Nobody knows where is the dip except them.$TSLA $NVDA $AMD $SMCI $AAPL $MSFT $AMD $GOOG $NFLX $LLY pic.twitter.com/puJ9MRRbju

— Jurabek🎯Sniper Trades (@StockSniperPro) April 20, 2024

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



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10 comments
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That drop was really massive. I think it is actually market manipulation

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23% decrease in stock price of SMCI is too much big figure.it seems a profit making stock in near future.

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If prices are down at the moment, I think we have a buying opportunity because the next year will lead the market higher.

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AI is defintiely a future. We can not overlook its potential. In fact, in hindsight, we will realize that is huge that we have ever contemplated.

Noted down. Bookmarked. I will closely follow this asset.

Thank you.

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I think semi-conductors are a bit overhyped from the AI mania. I do think that they are important but technology just isn't there yet for AI.

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hahaha, i can feel you when you said, it's nothing compared to in crypto, we are so familiar with these kind of drops. yes for sure, this stock will increase with time.

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Whenever there is a profit, there should always be a profit within the market

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