Super Micro Stock Breaks Above Key Technical Level For First Time In 7 Months: Retail’s Firmly Bullish

Super Micro Computer, Inc. (SMCI) stock soared on Tuesday and remains on track to extend its winning streak, which began on Feb. 12. The positive sentiment stemmed from the company’s fiscal year 2025 second-quarter update issued after the close on Feb. 11.

On Tuesday morning, the stock broke above its 200-day simple moving average (SMA) for the first time since Aug. 1, 2024. Investors would keenly observe whether the stock manages to close the session above this crucial level, as this is usually considered a bullish signal.

Chart Courtesy of TradingView

The San Jose, California-based company reported lackluster preliminary second-quarter results and cut its revenue guidance for 2025. 

However, investors latched on to the artificial intelligence server maker’s upbeat 2026 outlook and the confirmation that it will regain compliance with the Nasdaq rule for timely filing of its financial reports by the Feb. 25 deadline.

The company has yet to file its 10K report for the fiscal year 2024, and the 10Q reports for the first and second quarters of the fiscal year 2025.

Super Micro also announced the private placement of a $700-million convertible note offering last week. The company expects to use the proceeds for general corporate purposes, including to fund working capital for growth and business expansion.

On Stocktwits, retail sentiment toward Super Micro stock remains ‘extremely bullish’ (87/100), and the message volume stayed at an ‘extremely high’ level.

SMCI sentiment and message volume February 18, as of 2:12 pm ET | Source: Stocktwits

A retail watcher pointed to the spike in institutional ownership of the stock in the fourth quarter, reasoning that the attraction could be because demand for its technology will remain firm for many years to come.

Another user, who is long-term bullish on the stock, did not rule out a “sell-the-news” retreat after the 10K filing. 

Super Micro stock has gained over 57% this year, although it is way below the March 2024 all-time high of $110.61.

By the mid-session, the stock had jumped 12.11% to $53.71, moving above the $50 barrier for the first time in four months, and the upside was accompanied by slightly above-average volume.

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