Super Micro Computer (SMCI) Stock Analysis. 30-35% Move BEFORE Earnings! Unleashing the POWER of AI
The video discusses the stock performance of Super Micro Computer Incorporated (SMCI) in the AI industry, noting its current consolidation phase and potential for a 30-35% move higher before earnings. The speaker highlights the role of investor sentiment as the driving force behind the stock's movement, and suggests that a "buy the rumor" rally may occur leading up to the earnings announcement.
Video Summary
[00:00]( • Super Micro Computer (SMCI) Stock Ana... ) Super Micro Computer Incorporated (SMCI) is one of the hottest stocks in the AI universe, up 305% for the year, and it is about to make another big move.
SMCI has been consolidating for the last week.
The stock's performance is outpacing Nvidia and other AI darlings.
There is talk about a bubble in the AI space, but as long as expectations don't get too wild, the bubble can continue to inflate.
In 2024, there may be a selling or purging of these stocks, creating a long-term buying opportunity.
[02:31]( • Super Micro Computer (SMCI) Stock Ana... ) Technical analysis and investor sentiment are driving the rally of SMCI stock, not the actual price patterns.
Technical analysis, such as moving averages and Bollinger bands, can act as triggers for the stock rally.
Investor and trader sentiment or psychology is the main driver behind the price increase.
The FOMO trade (fear of missing out) played a role in investors rushing to buy SMCI stock when it hit the $1,000 mark.
[05:08]( • Super Micro Computer (SMCI) Stock Ana... ) Chris believes that the consolidation and break in the stock's movement is a good thing as it allows for a sentiment-driven opportunity for a potential 30-35% move higher before earnings.
The consolidation and break in the stock's movement is seen as a positive sign.
Chris expects a sentiment-driven opportunity for a potential 30-35% move higher before earnings.
Chris mentions the concept of "buy the rumor, sell the news" and applies it to the stock's movement.
[07:43]( • Super Micro Computer (SMCI) Stock Ana... ) The video discusses the discovery phase of SMCI stock and predicts that more people will start buying the stock as we approach April 30th.
Over the last couple of years, the stock has had random movements, but last quarter saw a 46% move ahead of earnings.
The consolidation around the $1,100 mark sets the stock up for another trigger from the technicals.
Once the stock starts moving, it will likely receive media coverage and create a fear of missing out among investors.
[10:16]( • Super Micro Computer (SMCI) Stock Ana... ) Chris expects SMCI stock to reach a target price of $1,500 before April 30th, with a technical trigger at around $1,250.
Chris believes that the stock will rally up to the $1,500 mark, which is a 25 to 30% increase from the current price.
Analysts may raise their price target ahead of earnings, but most of the activity is expected to come after earnings.
There is a possibility of a sell-off after the news is released, known as "sell the news" phenomenon.
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