SMCI Nears Golden Cross as AI Demand and Smuggling Probe Lift

On Friday, Super Micro Computer shares rose to $48, the highest level since Nov. 25, up about 145% from a March low of $19.55. The stock’s 50-day and 200-day moving averages are approaching a golden cross, a technical pattern traders watch for potential continuation.

The company reported it worked with Taiwan authorities to intercept an illegal smuggling operation that resulted in the seizure of 50 servers destined for China. Super Micro did not provide new financial guidance tied to the seizure.

In March, a lawsuit accused three individuals, including a co-founder, of smuggling NVIDIA chips into China. That case prompted several class-action suits against the company.

Sector earnings added momentum. Dell reported results and guidance that exceeded expectations and its shares rose as much as 40%. Hewlett Packard Enterprise advanced more than 11% to $42.63, and Lenovo reached a year-to-date high in Hong Kong. Analysts project continued demand for data-center equipment related to AI workloads.

Super Micro’s Q3 results showed net sales of $10.2 billion, down from $12.7 billion in Q2 but up from $4.6 billion a year earlier. Net income was $483 million, compared with $109 million in the year-ago quarter. The average analyst forecast cited by market trackers calls for roughly an 80% rise in annual revenue to about $39 billion for the current year and roughly $51.3 billion the following year.

SMCI trades at a forward price-to-earnings ratio near 15, below the S&P 500 average of about 23. Technical traders are watching the potential crossover of the 50-day above the 200-day average; some investors identify resistance near $58.76, the stock’s Oct. 5 high.

Investors continue to weigh improving AI-related demand for infrastructure against ongoing legal developments affecting the company.