Super Micro Computer Inc (NASDAQ: SMCI) will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects $8.10 in earnings per share and $5.29 billion in revenues as the company reports after market hours.
Riding the AI momentum, the company's stock is up 72.33% over the past year. Year-to-date, the stock is up 114.18%, beating the AI-darling Nvidia Corp (NASDAQ: NVDA) which has gained 102.84%.
Bearish Trend Ahead Of Q4 Earnings
The stock currently exhibits a strongly bearish trend as the share price is trading below its 5, 20, and 50-day exponential moving averages. Despite this bearish outlook, there is noticeable buying pressure, which is a positive indicator for future bullish movement.
The stock price of $624.74 falls below the 8-day simple moving average of $663.54, generating a bearish signal.
Additionally, the share price is well below the 20-day simple moving average of $758.68 and the 50-day simple moving average of $806.00, reinforcing the bearish sentiment.
The 200-day simple moving average is at $662.70, further indicating a bearish position, as SMCI's current price is $624.74.
The Moving Average Convergence Divergence (MACD) indicator reads -58.01, suggesting a bearish momentum, while the Relative Strength Index (RSI) is at 30.89, indicating that the stock is nearing the oversold territory and potentially poised for a bullish reversal.
Lastly, the Bollinger Bands (25) show a range between $584.10 and $975.83, which implies a bearish outlook as the stock price remains below the lower band.
Overall, while the prevailing technical indicators suggest a bearish trend, the oversold RSI and buying pressure hint at a possible bullish reversal in the near future.
Super Micro Analysts See Over 10% Upside
Ratings & Consensus Estimates: The consensus analyst rating on Super Micro stock stands at a Buy currently with a price target of $999.92. Recent analyst ratings from Wedbush, Susquehanna, and Nomura imply a 10.48% upside for Super Micro stock with a $685 average price target.
SMCI Price Action: Super Micro stock closed the trading day, Monday at $608.83, down 2.53%.