SMCI: A Sleeping Monster Ready to AwakenSuper Micro Computer, Inc. (SMCI) has recently shown a notable pullback, presenting what I believe to be a massive opportunity. Despite the stock’s short-term volatility, SMCI remains a sleeping monster with huge upside potential in my view.
The recent decline toward the $35 mark (down from $50 earlier this week) can be largely attributed to two factors:
Delisting from the NASDAQ100: This fueled a wave of shorting, as traders capitalized on the news—something we’ve seen happen with this stock in the past.
Profit-Taking: Let’s not forget SMCI delivered a 180% revenue increase in just 24 days. A retracement following such explosive moves is not only expected but healthy for future growth.
Please also keep in mind that the weight of SMCI on the NASDAQ100 was only 0.13% of the entire index. This means that by buying one contract of NASDAQ100, only 0.13% of your capital was allocated to SMCI. In simple terms, the delisting is practically irrelevant, as its small weight doesn’t have a significant impact on the stock’s true value or long-term potential.
While many are cautious, I remain extremely bullish on SMCI’s long-term prospects. In the short term, I will take a conservative approach, expecting the stock to reach $54, which represents an impressive 54% increase from the current price.
Looking further ahead, my longer-term target is $75, as I believe this undervalued stock still has plenty of room to run.
If history has taught us anything, it’s that SMCI has a habit of bouncing back stronger after periods of uncertainty—and this recent dip is no different. The upside potential is massive.
Let the traders short, let the market shake weak hands—opportunity is knocking for those with patience and vision!!
This is not financial advice, just my personal view!!
