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How Super Micro Computer Came on Our Radar in 2022

By:
Lucas Downey
Updated: Mar 3, 2024, 12:55 GMT+00:00

Super Micro Computer (SMCI) is being added to the S&P 500 soon. Would it surprise you to know it’s a stock that’s been seeing heavy demand for years?

Stock market indexes concept: S&P 500 on computer keyboard, FX Empire

In this article:

Super Micro Computer Stock Reveals Strong Demand

Institutional volumes reveal plenty. Since mid-2022, SMCI shares have seen non-stop inflows. We believe this to be institutional footprints.
Each green bar signals unusually large volumes in SMCI shares, hidden to the naked eye. This is why the stock is cranking higher:

Source: www.mapsignals.com

Plenty of semiconductor names are under accumulation right now. But there’s a powerful fundamental backdrop going on with Super Micro Computer specifically.

Super Micro Computer Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, SMCI has had positive sales & EPS growth in recent years:

  • 3-year sales growth rate (+29.9%)
  • 3-year EPS growth rate (+101.3%)

Source: FactSet

EPS is estimated to ramp higher this year by +35.3%.

Now it makes sense why the stock has been powering to new heights. Super Micro Computer is a very profitable company.

Here’s why this matters.

Marrying great fundamentals with our proprietary software has found many monster winning stocks over the long-term.

Super Micro has been showcased as a top-rated stock at MAPsignals continuously since 2022. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report numerous times. The blue bars below note when SMCI was a top pick…cutting through the noise.

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the superstars. Money flows often reveal tomorrow’s leaders…today.

Super Micro Computer Price Prediction

The Super Micro Computer rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in SMCI at the time of publication.

If you want to uncover stocks under accumulation, are a Registered Investment Advisor (RIA), or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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