Super Micro stock is getting hammered on AI server Margin concerns after the same thing happened to Dell last earnings season

This was a stock I casually considered buying on the correction but I quickly un-considered it due to two things: earnings were upcoming (yesterday) and despite its AI focus, it sure is no Nvidia. It makes AI servers for Nvidia and with its liquid cooling technology, supposedly has a leg up on the competition.

But the stock is getting hammered, post-earnings, as the bugaboo that hit fellow server maker DELL last earnings season hits Super Micro stock this earnings season. I had originally bought SMCI in late 2023 at the consolidation area that is now clear support. I sold it for around a 75% profit and was then served (no pun intended) a heaping helping of regret as it kept going ever higher... until it didn't.

Looking ahead, one wonders if the gap that launched the whole hysteria will fill down there at said clear support. That prospect would be helped if the broad stock market does not recover in the near-term (as currently favored, although we'll let technical parameters decide), but I think with all the momos getting flushed here SMCI may not need the market to fail into a bear in order to fill that gap.

Man stares at chart, eyes gap...

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