Super Micro Stock Rises Premarket As Analyst Points To Strong Orders: Retail Traders Look To Capitalize On Thursday Dip

• Super Micro’s order momentum, particularly amid investor concerns about market share erosion, is encouraging, Goldman says.
• The firm’s upgraded price target implied more than 37% downside from current levels.
• Retail traders see Super Micro stock as a long-term winner.

Super Micro Computer, Inc. (SMCI) stock trended on Stocktwits after it rebounded in Friday’s premarket, following the company's negative preannouncement that sent the stock down nearly 9% in the previous session.

Buoyed by Goldman Sach’s bullish commentary regarding order momentum, Super Micro stock climbed by over 1.5% in early premarket trading.

Super Micro’s Positive Deal Momentum

Goldman analyst Michael Ng, in a note released late Thursday, said he is encouraged by artificial intelligence (AI) server maker Super Micro’s order momentum, particularly amid investor concerns about market share erosion, a summary of the note published on the Fly showed. As such, the analyst raised the price target to $30 from $27, implying over 37% downside from Thursday’s closing price of $47.92. Ng maintained a ‘Sell’ rating on the stock. 

Ng also noted the revenue miss predicted for the first quarter, dragged by deliveries pushed back to the second quarter as customers upgrade designs. The analyst expects the revenue miss to pressure margins.

What Retail Feels About Super Micro

On Stocktwits, retail sentiment toward Super Micro stock flipped to ‘bullish’ by early Friday from ‘bearish’ the day before, and the message volume improved to ‘high’ levels.

A bullish watcher recommended buying “any and all” dips in AI-leveraged names such as Super Micro. 

Another user called Super Micro a “long-term” winner. “SMCI could be the only OEM shipping GB300 racks in volume = strong pricing power & margin boost,” they said. The user also said the pushout of revenue to the second quarter may have been due to a big customer likely upgrading orders to the GB300 Nvidia processor from the previous GB200 iteration.

Super Micro stock has traded in a 52-week range of $17.25 to $66.44, with the upper bound being its all-time high hit on Feb. 19. For the year-to-date (YTD) period, the stock has gained over 57%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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