Super Micro Computer Inc. (NASDAQ:SMCI) stock fell Thursday as a leadership shake-up at key chip partner NVIDIA Corp. (NASDAQ:NVDA) rattled investors and raised uncertainty across the artificial intelligence hardware sector.
NVIDIA announced the immediate resignation of CEO Jensen Huang and named Chief Financial Officer Colette Kress as interim CEO. The company also appointed Harvey C. Jones as its first board chair.
The sudden leadership change, coupled with ongoing export-control scrutiny, raised concerns about uncertainty in the AI hardware market and its potential impact on Super Micro's business.
Super Micro Stock Faces Technical Pressure
Super Micro shares traded below all four major moving averages, signaling a weak near-term trend.
The stock traded 8.8% below its 20-day simple moving average (SMA), 21.6% below its 50-day SMA, 15.5% below its 100-day SMA and 11.4% below its 200-day SMA.
Meanwhile, the moving average convergence divergence (MACD) indicator remained below its signal line. The negative histogram pointed to continued bearish momentum.
Although the stock formed a golden cross in August, its subsequent decline below key moving averages weakened that bullish signal.
Traders are watching resistance near $32.50 and support around $25.50. A break below support could expose the stock to further losses.
Recent Earnings Beat And Raised Forecast
Super Micro reported strong first-quarter fiscal 2027 results on Nov. 3, beating Wall Street estimates for both earnings and revenue.
The company posted earnings of $1.81 per share, above analysts' estimate of $1.23. Revenue surged nearly 297.5% year over year to $19.95 billion, topping expectations of $16.39 billion.
Non-GAAP gross margin reached 12.8%, exceeding the company's preliminary forecast of 12% to 12.5%.
CEO Charles Liang highlighted growing demand for the company's AI and data center infrastructure solutions.
Meanwhile, Super Micro forecast second-quarter adjusted earnings of $1.66 to $1.90 per share and revenue of $19.5 billion to $21.5 billion. Both forecasts exceeded Wall Street expectations.
The company also raised its fiscal 2027 revenue forecast to $72 billion to $82 billion, above analysts' estimate of $69.17 billion.
Analyst Outlook
Super Micro carries a consensus Hold rating, with an average analyst price forecast of $38.78.
Susquehanna raised its price forecast to $18 on Nov. 10 while maintaining a Negative rating.
Rosenblatt maintained its Buy rating and $57 price forecast on Nov. 4.
Meanwhile, Bank of America Securities raised its price forecast to $39 on Nov. 4 while maintaining an Underperform rating.
Price Action
SMCI Stock Price Activity: Super Micro Computer shares were down 5.34% at $28.80 at the time of publication on Thursday, according to market data.
