Super Micro Computer Inc. (#SMCI) weekly special report based on 1 Lot Calculation:
INDUSTRY: ARTIFICIAL INTELLIGENCE (A.I.)
- A.I. CONTRIBUTION TO GLOBAL ECONOMY: The AI industry, projected to add $15.7 trillion to the global economy by 2030, is growing rapidly. Companies like Super Micro, a leader in AI hardware, fuel this growth with high-performance, energy-efficient servers. Strong partnerships and a key role in AI innovation position Super Micro to benefit from the sector’s expansion, making it an appealing investment.
- SERVERS: DEFINITION. Servers are powerful computers that store, process, and manage data, allowing other devices or programs to access and use that data. They are essential for running websites, apps, and large-scale tasks like AI workloads.
SMCI: THE COMPANY
- Super Micro Computer is deeply tied to the AI industry, offering servers and storage systems optimized for AI, machine learning, and big data. Its focus on data centers, cloud computing, and edge computing cements its role in AI infrastructure. A key factor is its partnership with NVIDIA, using their GPUs to boost AI performance and scalability. This ensures Super Micro delivers efficient, high-performance solutions for growing AI demands.
- STOCK INDEX PARTICIPATION: SMCI stock is part of the S&P 500 (USA500) index.
SMCI: EVENTS AND ANALYSIS
- CONSUMER ELECTRONICS SHOW (CES) 2025 (JANUARY 7 – JANUARY 11): Scheduled for January 7-11, 2025, in Las Vegas, Nevada, CES is a premier technology event where innovations in artificial intelligence (AI), computing and new ground breaking technologies are showcased.
- NVIDIA CEO JENSEN HUANG SPEECH (JANUARY 7 AT 02:30 GMT): In 2024, Nvidia unveiled new GeForce RTX 40 SUPER Series graphics cards, new RTX games, new G-SYNC technologies, new Generative AI innovations, new enhancements for RTX Video Super Resolution, new GeForce NOW games and features, and tons more.
- SMCI AND NVIDIA: SMCI IS ONE OF THE LARGEST A.I. CHIP CUSTOMERS OF NVIDIA. SMCI is responsible for around 9% of Nvidia’s A.I. Chip sales. As such, Nvidia’s appearance at the 2025 CES Show could have a significant impact on SMCI stock as it has been the case over the past two years.
- STATISTICS: SMCI’S STOCK PERFORMANCE DURING CES SHOWS IN 2023 AND 2024 (AFTER THE A.I. BOOM BEGAN IN LATE 2022).
|
Year |
Period |
Price At The Beginning |
Price At The End |
Price Change (%) |
|
2024 |
January 9 - January 12 |
$ 29.49 |
$ 33.96 |
15.16% |
|
2023 |
January 5 - January 8 |
$ 8.15 |
$ 9.28 |
13.87% |
|
AVERAGE |
14.51% |
|||
Data Source: finance.yahoo.com
Please note that past performance does not guarantee future results
SMCI: OTHER EVENTS AND ANALYSIS
- Q3 2024 EARNINGS REPORT (NOVEMBER 5): Super Micro Computer reported a significant year-over-year revenue increase of 142%, driven by strong AI demand. The company achieved one of its strongest quarters in history, with net revenue near $5.3 billion. Earnings figures showed an increase of approximately 82% year over year.
- Q4 2024 EARNINGS REPORT (EXPECTED: JANUARY 29, 2025). The company is expected to report a record high revenue figure of $5.94 billion, up around 180% from the same period last year. Net income is expected to come in at $493.4 million, up 214% from the same period last year.
STRATEGIC PARTNERSHIPS AND COLLABORATIONS
- NVIDIA PARTNERSHIP - Super Micro Computer, Inc. (SMCI) has unveiled its most powerful SuperCluster to date, a cutting-edge AI data center solution featuring the NVIDIA Blackwell platform. This next-generation SuperCluster will dramatically expand the deployment of NVIDIA HGX B200 8-GPU systems, positioning Super Micro at the forefront of AI infrastructure.
STOCK PRICE ACTION
- SMCI TRADES AROUND 72% BELOW ITS RECENT ALL- TIME HIGH OF $122.9 (March 13, 2024). The stock currently trades at $34 and if the stock recovers fully to its recent all- time high then it could offer an upside of around 261%. However, the price can also decline.
- RECENT PERFORMANCE: SMCI STOCK HAS RISEN AROUND 25% SINCE PRESIDENT TRUMP WAS RE-ELECTED ON NOVEMBER 5, 2024. President Trump has promised to lower down corporate taxes to 15% from the current 21%, which could bode well for US Corporations, including Super Micro Computers. President Trump will take office on January 20, 2025.
#SMCI, December 26, 2024
Current Price: 34
|
SMCI |
Weekly |
|
Trend direction |
|
|
60 |
|
|
50 |
|
|
41 |
|
|
28 |
|
|
25 |
|
|
20 |
Example of calculation based on weekly trend direction for 1 Lot1
|
SMCI |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
130,000 |
80,000 |
35,000 |
-30,000 |
-45,000 |
-70,000 |
|
Profit or loss in €2 |
125,008 |
76,928 |
33,656 |
-28,848 |
-43,272 |
-67,312 |
|
Profit or loss in £2 |
103,812 |
63,884 |
27,949 |
-23,957 |
-35,935 |
-55,899 |
|
Profit or loss in C$2 |
187,074 |
115,122 |
50,366 |
-43,171 |
-64,756 |
-100,732 |
1. 1.00 lot is equivalent of 5000 units
2. Calculations for exchange rate used as of 13:30 (GMT) 26/12/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.