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The amazing $SMCI stock Rollecoaster drops 20%, should you buy the dip or short?


What a wild week for SMCI stock. This stock has been a dramatic rollecoaster for not just us trading it but even anyone just observing the madness. Turbo Option Trading has had our eye on this one for a while as this market pumps up anything AI or semiconductor. This particular company just so happens to involve both, so of courseĀ  there has been an explosion of interest. Before we go over what happened with the stock on friday, lets go over this company.

Who is Super Micro Computer (SMCI)?

Super Micro computer SMCI logo stock
The company at the center of madeness

Super Micro Computer, Inc., commonly known as Supermicro, is a global leader in high-performance, high-efficiency server technology and innovation. Founded in 1993 by Charles Liang, Wally Liaw, and Sara Liu, the company has since established itself as a prominent player in the data center solutions market. Supermicro specializes in designing and manufacturing advanced server solutions tailored to meet the diverse needs of enterprise, cloud computing, data storage, and artificial intelligence (AI) industries.

The company’s product portfolio includes a wide range of server, storage, and networking solutions, featuring cutting-edge technologies such as high-speed interconnects, advanced cooling systems, and energy-efficient designs. Supermicro’s commitment to innovation, reliability, and customer satisfaction has earned it a strong reputation among businesses worldwide, making it a preferred choice for organizations seeking scalable and cost-effective infrastructure solutions.

SuperMicro has garnered significant recognition within the technology industry for its contributions to advancing server technology and addressing the evolving demands of modern data centers. With a focus on delivering high-performance computing solutions while prioritizing energy efficiency and environmental sustainability, Supermicro has positioned itself as a key player in the global server market.

The company’s dedication to research and development, coupled with its extensive manufacturing capabilities, allows it to offer a diverse range of server products tailored to meet the specific requirements of various applications and industries. Supermicro’s customer-centric approach, combined with its commitment to quality and innovation, has enabled it to build enduring partnerships with leading enterprises, cloud service providers, and technology companies worldwide. As data center requirements continue to evolve with the advent of technologies such as AI, machine learning, and edge computing, Supermicro remains at the forefront of delivering cutting-edge server solutions to support the digital transformation initiatives of its customers.

SMCI stock trading

For all the good that’s been done in the company’s business $SMCI isn’t the talk of the town for it’s AI. Over the past few months $SMCI’s stock has garnered attention for the absolutely ridiculous run it’s been on. It’s hard not to notice, just take a look at this chart.

SMCI super micro computer stock trading chart
For Bulls this chart was a thing of beauty until the correction

As you can see from this chart SuperMicro’s stock gained bullish momentum at a near incomprehensible speed. The reason? Perhaps it’s bullish exuberance, more AI headline driven pump, SuperMicro’s relationship to semiconductor giant NVIDIA, or retail investors latching on to what could be their next stock to fanboy over. Perhaps it’s a combination of all of these.

Regardless of the reason, these bulls met their reckoning on friday. SMCI stock price dropped 20% in one session just a day after breaking the 1000$ price level, collapsing in spectacular fashion going into the long three day weekend. Now with baited breath bulls and bears with skin in the game for this stock find themselves waiting for market open to see the next stage of this dramatic run.

Where will it go next?

As we discuss in the video, a gap down further is expected on tuesday when the market opens. This has been the consensus in the Turbo Option Trading live trading room. As for how to trade it beyond tuesday? Consider joining us as we plot out the moves both for our members in the trading room and on our Youtube channel.

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