SMCI Stock Surges Toward $60 as Tech Rally Restores Confidence
After weeks of heavy selling, Super Micro Computer (NASDAQ: SMCI) staged an impressive rebound, jumping nearly 7% in a single session as...
Quick overview
- Super Micro Computer (SMCI) shares surged nearly 7% in a single session, reflecting renewed optimism in the IT sector after weeks of heavy selling.
- The stock's rebound follows disappointing Q2 2025 earnings that led to a significant selloff, wiping out about 30% of its market capitalization.
- Concerns over competition from Alibaba's potential AI chip and questions about SMCI's financial governance have added volatility to the stock's recovery.
- Investors are now focused on upcoming earnings guidance to determine if SMCI can sustain its price recovery and regain margin strength.
After weeks of heavy selling, Super Micro Computer (NASDAQ: SMCI) staged an impressive rebound, jumping nearly 7% in a single session as renewed optimism swept across the broader IT sector.
A Strong Comeback After Heavy Selling
SMCI shares surged close to 7% on Wednesday, breaking above a key resistance level as they headed toward the $60 mark. The rally reflected both broad gains in tech stocks and a shift in investor sentiment after the stock’s prolonged slump.
The bounce comes after Q2 2025 earnings disappointed the market, triggering one of SMCI’s steepest selloffs of the year. Weak revenue growth, squeezed margins, and lower-than-expected EPS caused a single-day plunge that wiped out about 30% of the company’s market capitalization.
From August Slump to September Recovery
SMCI shares had rallied to around $62 in late July before selling pressure set in. By late August, the stock slid below $50 and tested critical support near $42, where bargain-hunters stepped in to slow the decline.
Although the stock stabilized, overall sentiment remained fragile as investors awaited signs of stronger fundamentals.
Alibaba’s AI Chip Rumors Renew Competitive Jitters
The fragile recovery faced a new challenge when rumors surfaced in late August that Alibaba was developing its own AI inference chip. The headlines reignited competitive fears in the already crowded AI infrastructure market—an area where SMCI has been expanding aggressively.
These concerns were compounded by lingering worries over SMCI’s internal financial reporting practices, which raised questions about governance. The renewed unease prompted another sharp selloff, briefly pushing the stock below the $40 support level before value-seekers stepped in again to steady the price.
Technical Breakout Sparks Fresh Optimism
Wednesday’s rebound was technically significant. The stock bounced off the 50-month SMA (yellow)—a level that has acted as long-term support since the 2024 market downturn.
SMCI Monthly Chart – Buyers Need to Break the 20 SMA 
Market capitalization has recovered to above $34.8 billion, but technical analysts say the next challenge will be breaking above the $62 resistance from July and then surpassing the 2025 high at $66. Clearing those hurdles could confirm a stronger uptrend, while failure to hold above $60 risks another pullback.
Looking Ahead: Momentum Meets Skepticism
While the recent rally has energized bullish traders, SMCI must prove that fundamentals can support the price recovery. Investors will be watching upcoming earnings guidance for confirmation that the company can regain margin strength and maintain its competitive edge against rivals in the AI server space.
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