Despite a recent setback that saw the price of Super Micro Computer, Inc. (NASDAQ: SMCI) shares drop over 10% over the past week, SMCI stock seems to be making a remarkable recovery in its pre-market trading, during which it has made an advance of nearly 15%.
As it happens, the surprising turn of events in extended hours for SMCI shares is happening thanks to Nvidia (NASDAQ: NVDA) posting a strong set of earnings results, according to an X post shared by stock market analytics platform Barchart on February 22.
Specifically, Nvidia recently delivered a monster sales report that saw the chip-making behemoth’s earnings per share hit $5.16 in the last quarter, beating the expectations of $4.64, up 486% from a year ago, with overall revenues reaching a record high and beating estimates at $22.1 billion.
Picks for you
Not long after it came out, the report reinvigorated a bullish frenzy in the artificial intelligence (AI) sector, propelling not just the price of Nvidia shares but also the stocks of its peers and competitors, including SMCI, the price of which soared to $841 or by 14.55% in pre-market.
SMCI stock price analysis
Meanwhile, in terms of other charts, SMCI has recorded a decline of 6.78% on the day, adding up to the 10.83% drop across the previous week but nonetheless advancing 60.88% over the past month, according to the most recent information retrieved by Finbold on February 22.
At the same time, SMCI is outperforming 99% of all other assets in the stock market in terms of its yearly performance, as well as doing better than 96% of the other 32 stocks in the technology hardware, storage, and peripherals industry, with a healthy volume of over 9 million traded shares per day.
All things considered, SMCI seems to be riding a strong tailwind of the intensified AI demand, and Wall Street sees more advances in its future, with Rosenblatt Securities raising its near-term price target for Super Micro Computer shares to a high of $1,300.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
