Super Micro Among Best-Performing S&P 500 Stocks This Year Despite Market Mayhem: Retail Mood Stays Dim

The stock is down about 46% from its recent high, signaling that it is in deep bearish territory.

Super Micro Computer, Inc. (SMCI) shares shed nearly 8% on Thursday amid the ongoing market sell-off. Notwithstanding the recent weakness, Super Micro is the best-performing S&P 500 stock for the year-to-date period.

After starting the new year on a sour note, the San Jose, California-based artificial intelligence (AI) server maker’s stock began building momentum in early February, thanks to the company’s second-quarter business update and it becoming current with its financial reports filing.

Although the near-term guidance failed to inspire confidence, investors were encouraged by the fiscal year revenue outlook of $40 billion.

Super Micro followed up with a few positive product updates and also announced a $750 million convertible note offering. 

After these developments, the stock blasted off to an intraday high of $66.44 on Feb. 19, which, however, is way off its all-time high of $122.90 on Mar. 8, 2024, 

Since then, the Super Micro stock has come under selling pressure amid the broader market weakness triggered by President Donald Trump’s tariffs. The threat of potential counter-tariffs from impacted nations also weighed on Super Micro.

The stock is down about 46% from its recent high, signaling that it is in deep bearish territory. Yet, it is currently the second best-performing S&P 500 stock so far this year, after CVS Health Corp. (CVS).

After briefly breaking above the all-important 200-day simple moving average (SMA), Super Micro stock has pulled back below the level. It is now ensconced between the 200-day SMA of $50.51 and the 100-day SMA of $35.93.

On any potential downside, the stock could find support around the $37.5 level and its 100-day SMA. 

On the upside, the 200-day SMA will offer a stiff resistance.

On Stocktwits, the retail sentiment toward the Super Micro stock remained ‘bearish’ (26/100), and the message volume stayed at ‘extremely low’ levels.

A bearish user said there could be more pain for the stock in Friday’s session.

Another user seemed to think a management change at the helm could turn things around for the stock.

Super Micro ended Thursday’s session down 7.98% at $39.08, trimming its year-to-date gains to 28%.

The Finchat-compiled average analysts’ price target for the stock is $52.34, implying an upside of 34% from Thursday’s closing price.

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