Yahoo Finance

Key Takeaways

• Supermicro shares are likely to remain in the spotlight after surging 11% Tuesday as investors sought buying opportunities in leading AI stocks after a dramatic sell-off.

• The stock broke out from a pennant pattern in Tuesday’s trading session on the highest volume in a week, potentially setting the stage for further gains.

• Investors should monitor key overhead areas on Supermicro's chart near $48, $63, and $75, while also eyeing crucial support levels near $38 and $26.

Super Micro Computer (SMCI) shares are likely to remain in the spotlight after surging 11% Tuesday as investors sought buying opportunities in leading AI stocks after a dramatic sell-off to start the week.

Sentiment in the stock also received a boost following a price target hike from analyst Kevin Cassidy at Rosenblatt Securities, who pointed out, according to Barron’s, that the company’s AI revenue comprised nearly 70% of total sales and continued to accelerate.

Tuesday’s gains add to a recent run of volatility in the server maker’s shares after the company last month avoided a possible delisting by submitting delayed financial reports following a number of high-profile accounting and corporate governance challenges.

Supermicro shares have risen 34% so far in 2025, with the lion’s shares of those gains coming in February. The stock remains more than 60% below where it was trading 12 months ago as of Tuesday’s close.

Below, we break down Supermicro’s chart and use technical analysis to locate key price levels that investors may be monitoring.

Pennant Pattern Breakout

After breaking out from a falling wedge pattern in early February, Supermicro shares staged a strong rally above the 200-day moving average (MA) before retracing to the 50-day MA.

More recently, the stock broke out from a pennant pattern in Tuesday’s trading session on the highest volume in a week, potentially setting the stage for further gains.

Meanwhile, the relative strength index (RSI) confirms improving price momentum, with the indicator moving back above the key 50 threshold.

Let’s point out three key overhead areas on Supermicro’s chart worth watching and also identify a few crucial support levels to eye upon a possible reversal.

Key Overhead Areas to Monitor

Supermicro shares closed Tuesday's regular session at $40.84.

An initial move higher could see the shares climb to around $48, a location where the stock may find overhead resistance near the August swing low and a series of peaks that formed on the chart between September and December.

Buying above this level may propel a move to the $63 area. Investors who have accumulated shares at lower prices may look for exit points here near the stock’s prominent August and February peaks.