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Super Micro Computer Inc ($SMCI) Stock Forecast: Down 5.1% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Super Micro Computer Inc?

Super Micro Computer Inc. (SMCI) is a technology company specializing in server solutions and data center storage. The company is part of the semiconductor industry, which has been experiencing volatility due to geopolitical tensions and market uncertainties.

Why is Super Micro Computer Inc going down?

SMCI stock is down 5.1% on Jul 18, 2024 15:12

  • SMCI saw a significant decrease likely influenced by the negative sentiment in the semiconductor industry.
  • The consideration of stricter export restrictions on critical chipmaking equipment to China by the Biden administration may have directly affected SMCI's stock value.
  • The downward trend in chip stocks, including ASML, Nvidia, and TSMC, in response to geopolitical tensions and export limitations, likely played a part in SMCI's drop.
  • Despite a positive outlook for U.S. technology stocks and anticipated interest rate adjustments, issues specific to semiconductor companies like SMCI contributed to the decline in stock value.

SMCI Price Chart

SMCI News

US chip markets set to rally after TSMC results: Markets Wrap

(Bloomberg) — U.S. technology stocks are expected to recover slightly from their slide this week, helped by upbeat earnings from the world’s largest chipmaker and the prospect of encouraging results from other big players in the sector. Most Read from Bloomberg Nasdaq 100 futures rose 0.4% after better-than-expected earnings and a strong outlook from Taiwan Semiconductor Manufacturing Co. Nvidia Corp., Advanced Micro Devices Inc. and Super Micro Computer Inc. all rose sharply in premarket trading. The Nasdaq had its worst day since 2022 on Wednesday amid concerns about tighter U.S. restrictions on companies that supply advanced semiconductor technology to China. The pan-European STOXX 600 index rose 0.3%. Analysts say a relatively strong earnings season and expectations of interest rate cuts from the Federal Reserve and other central banks are also supporting sentiment. Later in the day, streaming giant Netflix Inc. will be the first major U.S. tech company to report results — and it’s expected to show continued growth in global subscriber numbers. “I’m not surprised people are trying to buy stocks on the dip,” said Michael Brown, chief strategist at Pepperstone Group Ltd. “The fundamental argument for stocks remains strong — earnings and economic growth look resilient and the Fed should start cutting interest rates from September.” But tech worries haven’t entirely dissipated, with Amsterdam-listed chip giant ASML Holding NV — among the companies that could be affected by any tougher U.S. measures — extending its 11% slide on Wednesday.

https://www.lankatimes.com/us-chip-markets-set-to-rally-after-tsmc-results-markets-wrap/

News Article Image US chip markets set to rally after TSMC results: Markets Wrap

3 Recent Stock Downgrades Smart Investors Should Note

The S&P 500 has continues to edge higher. A softer-than-expected inflation report for June fueled hopes that the Federal Reserve will start cutting rates in September. Several major investment advisory firms sifted their forecasts for Fed rate cuts and stock downgrades. The CPI report showed only a slight 0.06% increase in core inflation, excluding food and energy prices. The data suggests a deceleration in inflation since the beginning of the year. A notable slowdown in the previously high housing services inflation hints at diminishing inflationary pressures. The moderation in core CPI elements has led analysts to believe that the inflation trend is on a downward trajectory. Discrepancies exist between the CPI and the Fed’s preferred inflation measure, the core Personal Consumption Expenditures (PCE) price index. But, the overall pattern indicates a sustained reduction in inflation rates. Earlier in the week, Federal Reserve Chair Jerome Powell shared his concerns about achieving a balanced economic ‘soft landing.’ This involves managing inflation without undermining the employment market. The recent cooling of the labor market has lessened the threat of wage-driven inflation. But it also raises concerns about potential increases in unemployment. In the past, the robust labor market granted the Fed the leeway to wait for clear signs of easing inflation before making policy changes. However, current conditions suggest that delaying rate cuts could carry greater risks. Wells Fargo (NYSE:WFC) economists project that the Federal Open Market Committee (FOMC) will reduce the federal funds rate by 25 basis points in September, followed by an additional 25 basis point cut in December. Evercore also expects a rate cut in September. As a result of this improving macro backdrop, valuations are becoming stretched. And analysts are forced to cut ratings on the biggest winners, resulting in stock downgrades.

https://investorplace.com/2024/07/3-recent-stock-downgrades-smart-investors-should-note/

News Article Image 3 Recent Stock Downgrades Smart Investors Should Note

7 Long-Term Tech Stocks for Extending Investment Horizons

Is the tech trade really over? Much is being written about investors rotating capital out of high-flying technology names and into value and small-cap stocks. While the rotation is seen as healthy and likely to prolong the current market rally that began in late 2022, it seems doubtful that technology stocks will trail for long. First of all, tech firms tend to be the engines of innovation and growth in the economy. That fact has only accelerated with the advent of artificial intelligence (AI). Second, the quarterly financial results of technology companies justify their stock’s performance and lofty valuations. With the economy and consumer spending remaining resilient, there’s no reason to assume that there will be an earnings downturn. Lastly, technology companies, particularly the mega-cap variety, have a dominant position in the markets in which they compete. Some, it can be argued, have near-monopoly positions. That also looks unlikely to change or be seriously challenged in the near future. Here are seven longevity tech stocks extending investment horizons.

https://investorplace.com/2024/07/7-long-term-tech-stocks-for-extending-investment-horizons/

News Article Image 7 Long-Term Tech Stocks for Extending Investment Horizons

Trump and geopolitics drag down chip stocks: ASML, Nvidia, TSMC hit

The chips were down with the Biden administration getting tough and Republican presidential candidate Donald Trump talking tough. Global chip stocks fell sharply, with ASML, Nvidia and TSMC posting declines amid reports of tighter US export restrictions and Trump’s comments fuelling geopolitical tensions. ASML’s Netherlands-listed shares were down 11%, while Tokyo Electron shares in Japan closed nearly 7.5% lower. Arm, AMD, Marvell, Qualcomm and Broadcom were down more than 5% as of 11:50 a.m. Eastern Time (ET) on Wednesday (July 17). Nvidia was 8. 40% down on Nasdaq at 2.57 pm ET on Nasdaq. Clamping down on companies exporting to China The shares dropped after Bloomberg reported on Wednesday that the Biden administration was considering clamping down on companies exporting critical chipmaking equipment to China. Washington’s foreign direct product rule (FDPR) allows the U.S. to impose controls on foreign-made products if they use the slightest bit of American technology. This can affect non-U.S. companies.

https://theindependent.co/trump-and-geopolitics-drag-down-chip-stocks-asml-nvidia-tsmc-hit/

News Article Image Trump and geopolitics drag down chip stocks: ASML, Nvidia, TSMC hit

SOUN Stock: Sports Bar Chain Rolls Out Voice Tech From SoundHound AI

SoundHound AI (NASDAQ:SOUN) stock is on the move today after the artificial intelligence (AI) company saw its audio services added to sports bar chain Beef ‘O’ Brady’s. Beef ‘O’ Brady’s now allows customers of its restaurants to make orders with the help of AI audio. These capabilities were added to all of the chain’s corporate locations with the option for franchisees to add them to their stores. This spreads SoundHound AI’s services across the U.S. as Beef ‘O’ Brady’s has locations in 20 states. It is trained on the chain’s menu and can answer questions about it. That includes promotions and specials. James Hom, Chief Product Officer at SoundHound AI, said this about the collaboration. “As consumer preferences shift towards convenience, optimizing the ordering experience is essential for restaurants.” Beef ‘O’ Brady’s is leading the way in embracing AI technology, enhancing customer interactions throughout their journey. We are thrilled to partner with them to advance the dynamic restaurant landscape, and to continue to expand our footprint in the restaurant space.”

https://investorplace.com/2024/07/soun-stock-sports-bar-chain-rolls-out-voice-tech-from-soundhound-ai/

News Article Image SOUN Stock: Sports Bar Chain Rolls Out Voice Tech From SoundHound AI

Super Micro Computer Inc Price History

18.06.2024 - SMCI Stock was down 5.1%

  • SMCI saw a significant decrease likely influenced by the negative sentiment in the semiconductor industry.
  • The consideration of stricter export restrictions on critical chipmaking equipment to China by the Biden administration may have directly affected SMCI's stock value.
  • The downward trend in chip stocks, including ASML, Nvidia, and TSMC, in response to geopolitical tensions and export limitations, likely played a part in SMCI's drop.
  • Despite a positive outlook for U.S. technology stocks and anticipated interest rate adjustments, issues specific to semiconductor companies like SMCI contributed to the decline in stock value.

17.06.2024 - SMCI Stock was down 7.0%

  • SMCI stock declined today due to general negativity in the chip sector, influenced by worries over increased export restrictions to China and remarks from former President Donald Trump about Taiwan.
  • Rising semiconductor sanctions against China and criticisms of Taiwan Semiconductor Manufacturing Company (TSM) by Trump further contributed to the downward pressure on SMCI shares.
  • Reports on potential export restrictions for chip companies to China likely sparked concerns about SMCI's future revenues and market reach, prompting the bearish movement.
  • Although the collaboration between SoundHound AI and Beef 'O' Brady's could benefit SoundHound AI (SOUN) stock, it had no direct impact on SMCI's performance today.

17.06.2024 - SMCI Stock was down 5.8%

  • SMCI stock experienced a strong bearish movement today.
  • The US intensifying semiconductor sanctions against China and criticism of key contract chipmaker Taiwan Semiconductor Manufacturing Company may have negatively impacted SMCI's stock.
  • The bearish stance taken by significant investors in the options market on SMCI could have contributed to the downward pressure on the stock.
  • Despite the potential for market capitalization growth in the second half of the year, concerns about the risk-versus-reward ratio and the perception of being overvalued and overhyped might have led to the bearish sentiment surrounding SMCI today.

17.06.2024 - SMCI Stock was down 6.9%

  • Market sentiment towards SMCI has shifted from being a standout stock to a more cautious approach, with concerns about its valuation and potential risks.
  • Despite the positive outlook on tech stocks and the AI sector, SMCI's stock faced selling pressure, possibly due to profit-taking or reevaluation of its growth prospects.
  • Discussions on the potential of AI-driven investments and comparisons to other AI stocks like Nvidia may have prompted investors to reassess their positions in SMCI, contributing to the bearish movement.

16.06.2024 - SMCI Stock was down 5.1%

  • SMCI stock closed at $897.68 with a -1.35% change from the previous day.
  • Despite positive sentiment around growth prospects and environmental initiatives, the stock did not reflect these developments in today's trading.
  • The market may have reacted to broader economic factors or profit-taking by investors after the stock's significant year-to-date gains.
  • Investors might be waiting for more concrete financial results from the upcoming earnings report before committing further to SMCI, leading to the observed bearish movement.

15.06.2024 - SMCI Stock was down 6.1%

  • SMCI stock witnessed a bearish trend today after being included in the Nasdaq-100 Index, taking the spot previously held by Walgreens Boots Alliance.
  • There is a possibility that broader concerns regarding a market correction, as forecasted by prominent analysts, notably from Morgan Stanley, influenced the negative market reaction.
  • The announcement of SMCI's inclusion in the Nasdaq-100 did not have a significant impact in counteracting the prevailing market apprehension, leading to the stock's bearish performance.
  • Investors appear to be adopting a more conservative stance, choosing to divest from stocks like SMCI in anticipation of a potential market downturn, echoing the sentiments shared by market analysts.

15.06.2024 - SMCI Stock was down 5.6%

  • SMCI stock experienced a bearish movement despite the positive news of joining the Nasdaq-100 Index.
  • The anticipation and excitement surrounding another company's event may have diverted investor attention away from SMCI, leading to a sell-off.
  • Investors might be taking profits after the recent price appreciation in SMCI stock following the Nasdaq-100 inclusion announcement.
  • The competitive landscape analysis and industry comparisons may have raised concerns among investors, contributing to the bearish market movement of SMCI stock today.

12.06.2024 - SMCI Stock was up 5.2%

  • Super Micro Computer (SMCI) is a high-flying artificial intelligence (AI)-related stock that saw a strong bullish movement today.
  • The market has been experiencing a bullish trend with several stocks hitting 52-week highs, and the overall performance has been incredible in the first half of the year.
  • Despite market uncertainty, war, and high inflation, the market has turned in an impressive performance, with the Nasdaq and S&P 500 hitting new highs.
  • Analysts have been bullish on growth stocks, emphasizing the importance of identifying companies with strong growth potential for long-term investments.
  • Super Micro Computer's bullish movement could be attributed to positive sentiment towards AI-related stocks and the overall market optimism towards growth stocks with strong potential for expansion and profitability.

10.06.2024 - SMCI Stock was down 5.3%

  • Analysts downgraded SMCI stock from Buy to Neutral, citing limited upside potential.
  • SMCI closed at $895.61, experiencing a -0.41% decrease from the previous day.
  • The options market displayed bearish sentiment towards SMCI, with a higher percentage of traders showing bearish tendencies.
  • Selling pressure impacted SMCI despite the positive market sentiment for technology companies, potentially due to concerns about future growth prospects and market performance.

10.06.2024 - SMCI Stock was down 5.1%

  • SMCI stock experienced a bearish movement despite the positive sentiment in the market for chipmakers and AI-related companies.
  • The upbeat guidance provided by Corning, another materials/technology company, might have shifted investor focus away from SMCI, leading to the bearish movement.
  • While SMCI remains a great AI play according to analysts, the market may have been influenced by the hype surrounding other companies like Nvidia and Corning, causing a dip in SMCI stock.
  • The overall market resilience and focus on market-beating stocks in various sectors could have overshadowed SMCI's potential today, contributing to its bearish movement.

08.06.2024 - SMCI Stock was up 5.1%

  • The bullish movement in SMCI stock can be attributed to:
  • Positive Wall Street price target boosts for key AI beneficiary Nvidia Corp (NVDA).
  • Transformation of Dell Technologies into an AI server infrastructure provider, potentially boosting the overall sentiment towards AI-related stocks.
  • Continued interest in the data center industry, with eStruxture Data Centers Inc. uniquely positioned to meet the increasing demand for scalable and sustainable data center solutions.
  • Investors reassessing their portfolios for the second half of the year, with a focus on tech stocks, which could have contributed to the positive momentum in SMCI stock.

02.06.2024 - SMCI Stock was up 7.2%

  • SMCI stock experienced a strong bullish movement today, continuing its impressive performance in 2024.
  • The CEO's picture with Elon Musk at an AI data center could have sparked investor optimism and confidence in SMCI's future prospects.
  • Despite a recent pullback, bullish sentiment around SMCI remains strong, with the company being touted as a potential beneficiary of the AI gold rush.
  • The options market showing a bearish stance may indicate some divergence in investor sentiment, but overall, the positive news and performance of SMCI seem to outweigh any short-term concerns.

02.06.2024 - SMCI Stock was up 5.1%

  • Market sentiment towards SMCI remains positive, with notable gains year-to-date.
  • SMCI is seen as a potential beneficiary of AI-related trends and growing demand for infrastructure to support AI applications.
  • The uptick in SMCI's stock price today can be attributed to the following factors:
  • Despite a recent pullback, SMCI stock is viewed as a strong buy opportunity, showcasing significant year-to-date gains and strong performance compared to industry leaders like Nvidia.
  • The company's positive catalysts, such as AI growth, competitive edges, and market share expansion, are appealing to investors.
  • The overall bullish trend in chip stocks, coupled with a focus on AI technology and associated infrastructure, is bolstering the optimistic outlook on SMCI.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.