Keep an eye on Super Micro Computer (SMCI).

After dropping from about $65 to $35, the tech stock caught strong support at its 50-day moving average and is just starting to pivot higher. From its last traded price of $42.15, we’d like to see SMCI initially retest $50 a share.

Helping, JPMorgan upgraded Super Micro Computer to a neutral rating with a target of $45.

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“The company has cycled past the uncertainty in relation to pending SEC filings and is on the cusp of benefitting from ramp in Blackwell-based server shipments which are already seeing materially higher demand than prior generation, with additional benefit to revenue growth from higher ASPs,” the firm said, as quoted by CNBC.

Analysts at Rosenblatt initiated a buy rating on SMCI with a target of $60.

Rosenblatt highlighted the company’s strong position in the artificial intelligence space, noting that “investors have started to appreciate the company’s inherent innovation, design, deployment, and manufacturing scale capabilities,” as quoted by Investing.com.

Sincerely,

Ian Cooper