Super Micro Stock Soars On Nasdaq Compliance, But Can The Rally Hold?

Super Micro Computer Inc. SMCI just dodged a major bullet, and Wall Street is cheering.

The artificial intelligence-focused server maker skyrocketed over 26% in premarket trading on Wednesday after announcing it had regained compliance with Nasdaq's filing requirements.

But while the delisting threat is off the table, technical signals suggest the rally might not be smooth sailing.

Chart created using Benzinga Pro

SMCI Stock Moderately Bullish, But Selling Pressure Spells Caution

SMCI's stock has been on a wild ride, up 51.55% year to date but dropping 22.64% over the past five days. While the current trend remains moderately bullish, selling pressure is creeping in, raising concerns about a potential bearish shift.

Technically, the eight-day simple moving average of $50.28 and the 200-day simple moving average of $52.75 suggest resistance ahead, reinforcing the risk of a pullback. However, support remains strong, with the 20-day simple moving average at $41.88 and the 50-day simple moving average at $36.24, both flashing bullish signals.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator of 5.80 leans bullish, but with a Relative Strength Index of 63.50, SMCI stock looks heated. Any movements closer to the 70 (overbought) mark could trigger a pullback.

Dodging Nasdaq's Ax

Super Micro submitted its long-delayed financial results for fiscal 2024 and the first half of fiscal 2025 to the U.S. Securities and Exchange Commission, securing the green light from Nasdaq. The company had been under pressure after losing its previous auditor, Ernst & Young, and uncovering weaknesses in internal controls. While the fresh audit from BDO confirmed the company's numbers, it also flagged governance issues—something investors should not ignore.

Related: SMCI Stock Pops Over 26% In Wednesday Pre-Market After Super Micro Computer Says It ‘Regained Compliance’

Despite the turbulence, Super Micro's business remains on fire. Fueled by surging demand for Nvidia Corp's NVDA graphics processing units, the company's sales more than doubled to $14.99 billion in fiscal 2024. Elon Musk's artificial intelligence venture, xAI, is among its high-profile customers.

What's Next For SMCI Stock?

With Nasdaq compliance secured, Super Micro has removed a key overhang, but questions remain about governance risks and potential litigation.

SMCI stock's sharp premarket move shows investor relief, but whether it can sustain gains depends on market confidence in its long-term fundamentals.

Traders should watch for a break above resistance levels to confirm continued bullish momentum—or signs of selling pressure dragging the stock lower.

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