Studying the chart to look at levels of entry and exit is not enough in today’s market; investors need to understand the story behind each candlestick, each day, and each “pattern.” Today, more than ever, the stories behind these formations have to do with liquidity; since there are many more market participants than in recent periods, the so-called “smart money” is after one thing and one thing only, optimal liquidity levels to take a risk on (or off).
With this in mind, two specific levels have emerged for shares of Super Micro Computer Inc. (NASDAQ: SMCI) that investors can consider today, from which they can start to develop a winning strategy for their capital moving forward.
Understanding what is happening behind these levels will be key to understanding why they should look to them in the first place, lest they become part of the chartist herd.
Additionally, there are some favorable developments currently underway in the United States technology sector, where shares of Super Micro Computer can begin to shine under the right conditions and attract more capital to capitalize on a promising bullish setup for the company moving forward.
Tied to the charts and company fundamentals, this is where Super Micro Computer stock truly shines.
What These Levels Mean for Super Micro Computer Stock
[content-module:TradingView|NASDAQ: SMCI]First and foremost, investors need to understand what the concept of support means. Support is not only a price from which the stock will rebound, making it a foolproof entry in a long play; support can mean a hundred different things at the same time.
Support can be a massive selling wave getting absorbed by passive buyers, a massive buying wave that got absorbed by passive sellers who simply ran out of reasons to keepack of interest from both buyers and sellers, therefore selling, or a l forcing the market to move in order to find consensus.
This support can be found at around $32.3 per share on Super Micro Computer, and judging by the low volume recorded during May and June 2025 (when this price was hit), support was formed due to a lack of interest. This is particularly important since investors may assume that the market assigns no value to this price.
Therefore, the value should be found elsewhere, either much lower or higher than that $32.3 per share range. Here is where another level comes in, roughly $48 per share. At this short-term high, it is clear that the price retreated in a manner reminiscent of “resistance” with significantly more volume.
This can be taken as a sign that sellers are overwhelming buyers, most likely, and also a reason to revisit, knowing that there is no interest in trading in the “support” area. This all means that there is likely a lot of resting liquidity right at that $48 price since all likely want to cut their losses, sellers entered there and will above it.
Closing their losses means a buy order, and new buyers (even institutions) know they can “attack” those resting buy orders to catch a higher free ride.
With all these conclusions drawn from Super Micro Computer's stock volume, investors now need to determine which level is more likely to be reached.
The Proof Is in the Flows
[content-module:Forecast|NASDAQ: SMCI]As of mid-May 2025, Super Micro Computer saw a new position worth up to $167.8 million from Northern Trust, an institutional buyer that likely took advantage of the volume imbalances at the $ 32.30 per share mark. This not only gives investors confidence that the next logical step is to attack that next $48 level, but also a check that sophisticated participants like the company.
At the same time, short-sellers know that their initial hopes and dreams might not materialize after support has been formed a couple of times over the past month, which is why investors see up to a 4.1% decline in short interest during the same period, a clear sign of bearish capitulation.
Understanding all of these factors put together, a decision by Nehal Chokshi from Northland Securities to place a $59 valuation on Super Micro Computer stock may be justified. This view would suggest a potential 36% upside compared to today's prices, providing investors with an even stronger reason to consider this setup.
Last but not least, Super Micro Computer is directly tied to and exposed to the upside potential in artificial intelligence and chipmaking, some of the hottest areas in the market today. This exposure translates to where Wall Street analysts see earnings per share (EPS) going for the fourth quarter of 2025.
With a view for up to $0.94 per share, this would imply Super Micro Computer can deliver as much as 200% in EPS growth before the year is over, compared to today’s reported $0.31 in EPS. As most investors know, where EPS goes, so does the stock price, and now they have a reasonable ceiling to break before it's too late to consider this name.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
