SMCI Stock Rally: 45% Gain in 2 Days Could Be Just the Start

Story by Thomas Hughes, MarketBeat

 • 2h • 

4 min read

After more than a year of struggles and uncertainties, the market for Super Micro Computer (NASDAQ: SMCI) is ready to rebound, rebound strongly, and continue rallying on into the year's end. The reason is that the accounting issues are behind it, and the news cycle is increasingly positive. The most visible catalyst is the U.S. opening of Saudi Arabian AI markets.

President Donald Trump eased restrictions and paved the way for a multi-billion-dollar AI infrastructure investment. At face value, it means hundreds of thousands of NVIDIA and AMD GPU semiconductors over the next five years. That equates to an equivalent number of Super Micro Computer servers and server systems, along with the upgrades and replacements they will need in the coming years. 

Super Micro Inks $20 Billion Deal: Revenue Outlook Improves Significantly

Among the deals announced in Riyadh alongside the HUMAIN investments in NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) semiconductor technology is a partnership between Super Micro and DataVolt. The $20 billion deal will fast-track the delivery of Super Micro's ultra-dense GPU servers and rack systems.

The deal will play out over the next five years as Saudi Arabia builds out its datacenter infrastructure. It is worth nearly 100% in revenue growth relative to the 2025 consensus. 

[content-module:Forecast|NASDAQ:SMCI]

The analysts' trends set up a market catalyst that the DataVolt deal can unlock. The analysts' coverage has increased significantly over the past 18 months, with sentiment firming to Moderate Buy, but the price target has declined.

The latest coverage is an initiated Outperform from Raymond James, whose analysts called the company a near-pure-play on AI, well-positioned in the market and gaining share in branded and wholesale markets.

The stock price catalyst is a shift back to price target increases, a likely outcome given the company's progress and new deals.

Institutional and short-selling trends also align with an outlook for rapidly improving share prices.

The short interest alone is enough to increase the price action significantly, running at 22% in early Q2 and trending near record levels.

Add in the institutions, which own about 85% of the stock and are buying on balance in 2025, and the stage is set for a short-covering rally that has likely already begun.

Super Micro Computer Is a Deep Value 

Super Micro Computer's revenue and earnings growth outlook was robust before the Saudi deals were announced, putting the stock at deep value levels relative to its forward outlook. In mid-May, the stock traded at only 9x its 2028 forecasts, which are now too low. The stock price should trade closer to 30x its earnings or higher, suggesting a solid 200% upside can be easily achieved within the next few quarters. 

The critical resistance point for the stock price action is near $56.50 and will likely be reached before the end of H1 C2025, possibly before the Q4 F2204 earnings are released.

Due to the launch of new technology, the company is expected to accelerate its growth and may exceed consensus forecasts. This month, the company began volume shipments of its next-gen, AI-optimized max-performance servers. 

The risk for SMCI investors in 2025 is market overhang. A market overhang is a large block of shares that could be released on the market, capping gains or pressuring lower shares. In this case, the overhang is previous buyers who are now in the red following purchases made in early 2024.

Assuming a move to fresh highs above $56.50, the critical resistance targets include $68 and $98. There is a significant chance of a bearish reversal within the $68 to $98 range. Should any indication of additional accounting impropriety be revealed, the odds of a bearish reversal increase to virtually 100%. 

CoreWeave beats on revenue, reports more than 400% growth in first earnings after IPO

Published Wed, May 14 20254:26 PM EDTUpdated 10 Min Ago

Jordan Novet

@jordannovet 

Shares of artificial 

Key Points

• Nvidia-backed CoreWeave delivered faster revenue growth than analysts were expecting.
• The cloud provider rents out Nvidia graphics processing units.
• Revenue increased 420% from a year earlier.

intelligence infrastructure provider CoreWeave

 reported better-than-expected revenue on Wednesday in the company’s first earnings release since going public. The stock popped in extended trading.

Here’s how CoreWeave did in comparison to LSEG consensus:

• Earnings per share: Loss of $1.49
• Revenue: $981.6 million vs. $853 million expected

Revenue soared 420% in the quarter, which ended on March 31, from $188.7 million a year ago, according to a statement. That compares with 737% growth for all of 2024.

The company’s net loss of $314.6 million widened from $129.2 a year earlier, partly because of $177 million in stock-based compensation costs for awards tied to the initial public offering.

In renting out access to Nvidia graphics processing units, CoreWeave competes with cloud providers such as Amazon. But large companies such as Google and Microsoft have come to depend on CoreWeave.

During the quarter, OpenAI committed to a five-year deal with CoreWeave that will be worth up to $11.9 billion. The transaction is on top of OpenAI’s reliance on Microsoft, which was responsible for 62% of CoreWeave’s 2024 revenue.

There was some skepticism heading into the report even though the stock was up 31% for the week.

Long-term uncertainty on AI supply and demand, as well as worries about the economy, “likely keep shares range-bound for now,” Wells Fargo analysts wrote in a report to clients last week. The firm recommends holding the stock.

After completing the biggest U.S. venture-backed tech IPO since 2021, CoreWeave saw its shares debut on Nasdaq in late March, initially at $39.

Nvidia, a customer and major supplier and already one of CoreWeave’s major investors, stepped in to anchor the IPO at $40, below the $47 to $55 range announced earlier.

Executives will discuss the results and issue guidance on a conference call at 5 p.m. ET.

1. Technology

SMCI Stock Jumps 15%. What’s Behind Super Micro’s Latest Surge.

By Mackenzie Tatananni

Updated May 14, 2025, 10:57 am EDT / Original May 14, 2025, 8:31 am EDT

Shares of Super Micro Computer SMCI +15.60%  extended gains on Wednesday following a flood of good news.

The stock surged 15% to $44.57, putting it on pace for its highest close since Feb. 26, according to Dow Jones Market Data. The S&P 500  SPX +0.07%  and Nasdaq  Composite COMP  +0.71%  were up 0.1% and 0.4%, respectively.

Super Micro’s steep ascent began Tuesday after Raymond James analysts initiated coverage at Outperform with a $41 price target. The firm dubbed the server maker “a market leader in AI-optimized infrastructure” and lauded its ability to offer “competitive pricing” relative to peers.

Also on Tuesday, Super Micro said it had shipped a number of high-density servers powered by Advanced Micro Devices’ 

AMD

+4.70%

 EPYC 4005 series processors, and separately announced a $20 billion deal with Saudi Arabian data center company DataVolt.

The multi-year partnership is meant to accelerate the delivery of GPU platforms and rack systems for DataVolt’s hyperscale campuses, the companies said.

Shares received an additional boost along with the broader market after the U.S. and China agreed to temporarily lower tariffs. Super Micro ended Tuesday’s session up 16% at $38.89.

Regardless of the sharp gains, the stock remains down 53% from its 52-week high and off 62% from its record closing high of $118.81, which it notched in March 2024.

Shares peaked at the end of February after the server maker narrowly avoided delisting from the Nasdaq by filing a string of delayed financial reports with the U.S. Securities and Exchange Commission.

Despite the company’s proclamation that the matter was “closed,” auditor BDO expressed an adverse opinion, stating that Super Micro “did not maintain, in all material respects, effective internal control over financial reporting as of June 30, 2024.”

An adverse opinion indicates that a company’s financial statements are misrepresented or inaccurate. While months have passed since the debacle, Raymond James analysts argued that the company’s “reputational risk” was dampening its valuation.

The sudden increase in Super Micro’s price, amounting to a 39% gain over the past three days, raises questions as to whether the stock is caught in a short squeeze.

A short squeeze occurs when the price of a stock rises unexpectedly instead of falling, forcing short-sellers to buy back shares to diminish their losses. This collective buying can drive up a stock’s price even further.

As of May 2, 108.28 million shares were sold short, representing 21% of Super Micro’s float. As a general rule of thumb, short interest between 10% and 20% is considered high, while any value exceeding 20% is extremely high.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

SMCI | Saudi Data Center Company DataVolt in $20B Deal with Supermicro

 

Saudi Data Center Company DataVolt in $20B Deal with Supermicro

May 14, 2025 by staff Leave a Comment

RIYADH, Saudi Arabia – 13 May 2025 – DataVolt, a Saudi Arabian data center company, today announced the signing of a multi-year partnership agreement with Super Micro Computer Inc. for ultra-dense GPU platforms and rack systems for DataVolt’s hyperscale AI campuses in Saudi Arabia and the US.

The deal, valued at $20 billion, deepens the strategic bond between the companies and marks a major milestone and commitment to artificial intelligence and data center solutions.

DataVolt is an operator of data centers, integrating dedicated high-availability multi-technology renewable energy infrastructure solutions and green fuels. The company is headquartered in Saudi Arabia and has offices in the U.S., Uzbekistan, India, and the UAE, and presences in South Korea and South Africa.

“We are thrilled to partner with Supermicro and build on the strong foundations laid in these first 100 days of the Trump Administration. The policies and engagement of President Trump’s administration and the strategic vision of His Royal Highness Mohammed bin Salman Al Saud, Crown Prince and Prime Minister, created a welcome business environment. Our vision is to pair gigawatt-class renewable and net zero green hydrogen power with the industry’s most advanced server technology, giving customers access to unprecedented scale and sustainability. Partnering with Supermicro guarantees us a U.S.-made supply chain for critical GPU systems and positions DataVolt to accelerate our investment plans” said Rajit Nanda, CEO of DataVolt.

“We are excited to partner with DataVolt and continue expanding our manufacturing efforts in the United States,” said Charles Liang, President and CEO of Supermicro. “By working together, we will bring cutting-edge AI and compute infrastructure, enabling the Kingdom’s vision of becoming a global hub for technology and innovation.”

Uber introduces Ride Shares, a rush hour version of Pool

Sarah Fielding

Wed, May 14, 2025 at 9:11 AM PDT

2 min read

Uber is introducing a few new options for riders that it claims will save you money. These choices include Route Share, which can only be described as if Uber Pool and buses had a love child (though Uber has already tried to reinvent shuttle buses a few times). It offers pickups in certain spots "along busy corridors" every 20 minutes — though only during weekday rush hours.

Basically, you can save "up to" 50 percent off UberX by treating Uber like a bus, walking to a pickup location and then getting dropped off at another designated spot near your destination. The Pool bit is that there might be up to two other riders with you.

Route Share will let you book a seat between seven days and 10 minutes before you need it. The option is now available from 6AM to 10AM and 4PM to 8PM on weekdays in New York City, Philadelphia, Chicago, San Francisco, Dallas, and Baltimore, with more cities coming.

Uber is also rolling out two different ride passes, a price lock and a prepaid option. The price lock pass lets you pay $3 to reserve a set cost for a specific ride. It seems to be pretty low risk, as if the ride ends up being cheaper when you use it, Uber won't charge you the difference. You can use a price lock pass on up to 10 different routes each month. This pass is now available in cities like Chicago, Dallas, Las Vegas, Miami and San Francisco — but should roll out to the rest of the US soon.

Then there's the prepaid pass, which lets you pay for multiple trips at a time. So, say you take an Uber to work or your partners place regularly, you can buy a set of trips along that route. The passes will work for 30 days or up to $50 in savings, whichever you hit first. You do have to buy either five, 10, 15 or 20 rides at a time, so Uber gets a guarantee you'll use their service and you get a discount in return. Both types of passes will also be available on teen accounts this fall.

AMGN | W chart | Long term investment

 

SMCI Stock Soars 16% After Bullish Outlook from Raymond James

 Super Micro Computer, Inc. (NASDAQ: SMCI) stock is back in the spotlight after a massive 16.02% surge on Tuesday, closing at $38.89 per share. The rally comes on the heels of a bullish coverage initiation by Raymond James, which is betting big on the company’s role in the artificial intelligence (AI) hardware race.

Why SMCI Stock Jumped

Raymond James Financial Inc. initiated coverage of SMCI stock with an “Outperform” rating and set a $41 price target, reflecting further upside from Tuesday’s close. The firm noted SMCI’s strategic positioning in the $145 billion AI infrastructure market, where it currently holds a 9% market share.

This endorsement was enough to send the stock flying, making SMCI one of the top 10 gainers in the market during a day when major indices showed mixed results. The S&P 500 rose 0.72% and the Nasdaq jumped 1.61%, while the Dow slipped 0.64% as investors responded to cooling April inflation numbers.

A Closer Look at SMCI’s Numbers

While the stock price action looks strong, SMCI’s recent financial performance has been more nuanced:

• Net income for the third quarter (ending March 31, 2025) fell 73% year-over-year, coming in at $108 million, down from $402 million.
• Net sales, however, increased 19% year-over-year, reaching $4.599 billion, up from $3.850 billion in Q3 2024.

Despite the earnings hit, investors are focused on the company’s long-term growth trajectory, particularly in supplying advanced server solutions to AI, data center, and enterprise computing customers.

SMCI’s Role in the AI Boom

SMCI’s product lineup, which includes GPU-dense servers and liquid cooling systems, has made it a key supplier in the AI gold rush. With firms like Nvidia and AMD depending on scalable hardware solutions, SMCI’s ability to rapidly customize and ship high-performance computing systems gives it a competitive edge.

Raymond James emphasized SMCI’s “nimble and vertically integrated model” as a major reason for its optimism. The firm expects the AI infrastructure segment to remain hot through 2025 and beyond, which could directly benefit SMCI’s top and bottom lines in future quarters.

Market Outlook

SMCI’s Tuesday rally not only puts it among the top market performers but also highlights growing investor appetite for AI-adjacent hardware plays. While many pure-play AI stocks have struggled in 2025, SMCI’s diversified revenue model and exposure to essential infrastructure give it a unique advantage.

Still, caution remains. The significant year-over-year drop in profits raises questions about long-term margin sustainability, especially if competition heats up or capital spending slows in tech.

Bottom Line

SMCI stock may be experiencing short-term volatility, but with major firms like Raymond James backing its growth story and the AI hardware market continuing to expand, Super Micro Computer is a stock to watch. Whether this 16% jump is a breakout or a blip, it signals renewed investor confidence in SMCI’s future, and positions it squarely within the narrative of 2025’s tech rebound.

Leaderboard timeline - Position - Entry date

 

川普：市场还会涨得高的多，没有通胀，必须降息…

 周二，标普500指数收复年内失地之际，川普表示，市场上涨太美妙了，还会涨得高的多。同日，川普援引当日稍早出炉的弱于预期的通胀报告，再次向美联储主席鲍威尔施压，要求其降息。

川普又点评市场了。

周二，美股早盘再度上涨、标普500指数收复年内失地之际，美国总统川普表示，一个月前，各家公司还对我不满意，市场上涨真是太美妙了。它还会继续涨，涨得高的多。

不过这一次川普喊话后，美股并没有像此前那样盘中迅速拉涨。反之，短线来看，标普500指数涨幅收窄至0.8%，道指跌148点、跌幅重新扩大至0.4%，纳指上涨不到290点，涨幅收窄至将近1.5%。

同日，川普援引当日稍早出炉的弱于预期的通胀报告，再次向美联储主席鲍威尔施压，要求其降息，川普在社交媒体上写道：

通胀没有下降，汽油、能源、食品杂货以及几乎所有其他商品的价格都在下降！！！

美联储必须像欧洲那样降息。鲍威尔的“太晚了”是怎么回事？

美联储的策略对美国不公平，美国已经准备好蓬勃发展。顺其自然吧，这将是件美好的事情！

川普还表示，潜在的税收法案有望推动美国经济腾飞。

  此前川普喊“买股票”效应

回顾过去几个月的美股走势，川普讲话对市场的影响非常大：

在4月初，据央视新闻，美国实施10%普遍关税以及对汽车、钢铁和铝材等特定行业的关税措施，导致标普500指数自2月份峰值，一度跌近19%。

随后，在川普4月9日表示“现在是买入的好时机”后，几个小时后，他宣布暂停了部分关税，美股在当月大幅反弹逾16%。

川普的“喊买”并没有止步于此：

川普在5月8日再次强调，如果贸易协议与减税相结合能够取得成果，“你最好现在就出去买股票。”

此后本周一，据中美日内瓦经贸会谈联合声明，美国和中国宣布暂时削减关税。这令美股周一全线大涨，标普500指数涨3.3%，纳指100大涨4%。美股涨势延续到周二，标普500指数盘中收复年内全部失地。

美股自4月初以来的大幅反弹，凸显川普4月9日宣称“重大买入机会”的喊涨效应。

SMCZ | SMCL | Aftermarket | What to do? | How to hedge risk aftermarket?

 Umm u have two options, u can set a a automatic order for the opposite of whatever ur in and it will close u out when it gets to that point. Like if u in a buy with 5 contracts, I set a order for a sell of 5 contracts and I put the number I want it to do so for me and it works after market, I trade futures.

U could also set a alert on whatever u chart on for me I use trading view and i could set a alert a few ticks below where I wanna get out so when it gets close my phone rings and I can open up my laptop and manually exit.

Leaderboard update | May 13 2025