Watch These Supermicro Price Levels as Stock Continues to Soar

Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now

Shares Have Gained 45% Since Server Maker's Business Update Last Week

Timothy Smith

Tue, Feb 18, 2025, 8:37 PM 3 min read

Supermicro shares surged more than 16% on Tuesday, extending an impressive rally that followed the server maker’s upbeat business update last week.
The stock has seen follow-through buying on above-average volume after breaking out from a falling wedge pattern earlier this month.
Investors should watch crucial overhead areas on Supermicro's chart around $70 and $96, while also eyeing key support levels near $50 and $38.

Super Micro Computer (SMCI) shares will remain on watchlists after surging more than 16% on Tuesday, extending an impressive rally that followed the server maker’s upbeat business update last week.

Investors bid the stock up for a fourth consecutive trading session on Tuesday after the company guided significant revenue growth in fiscal 2026 during the update, as demand grows for artificial intelligence (AI) infrastructure.

Buying enthusiasm has also been bolstered after the company said during the same update that it expects to submit its delayed fiscal 2024 financial reports by the Nasdaq’s Feb. 25 deadline to avoid being delisted from the exchange.

Since last week’s update, Supermicro shares have soared 45%, but still trade down 30% over the past twelve months as of Tuesday’s close following a number of high-profile accounting and corporate governance issues. The stock rose 16.5% to close at $55.80 on Tuesday.

Below, we take a closer look at Supermicro’s chart and apply technical analysis to point out crucial price levels worth watching out for.

Falling Wedge Breakout Signals Continuation Move

Supermicro shares broke out from a falling wedge pattern earlier this month, signaling a continuation move higher. Indeed, the stock has seen follow-through buying on above-average volume, with gains accelerating in recent trading sessions.

While the relative strength index (RSI) confirms bullish momentum with a reading above the 70 threshold, it also warns of overbought conditions, potentially leading to short-term profit-taking.

Let’s identify two crucial overhead areas to watch where Supermicro shares could run into selling pressure and also identify key support levels to eye during potential retracements.

Crucial Overhead Areas to Watch

Further buying could see the shares initially test the psychological $70 level. Investors may look to book profits in this region near a trendline that links last year’s February pullback low with the April trough. The location also roughly aligns with a bars pattern continuation price target that takes the stock’s uptrend from mid-November to early December and repositions it from the falling wedge pattern’s lower trendline.