Super Micro Computer One Chart Explaining the Runup

Super Micro Computer is a Magnet for Big Money

So, what’s Big Money? Said simply, that’s when a stock presses higher alongside chunky volumes. It’s indicative of institutions betting on the shares.

Unsurprisingly, Super Micro has many fundamental qualities that are attractive.

This sets up well for the stock going forward. Paying attention to how the shares trade, suggests there could be more upside.

The last year tells the story. Each green bar signals big buying volumes as the stock ramped in price:

In the last year, the stock attracted chunky Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

• Year-to-date outperformance vs. VanEck Semiconductor ETF (+44.1% vs. SMH)

Outperformance is important for leading stocks.

Super Micro Fundamental Analysis

Now, let’s dive into fundamentals. SMCI has had double-digit sales growth, and the future earnings outlook is solid too. Take a look:

• 1-year sales growth rate (+7.8%)
• 3-year EPS growth rate (+30.2%)
• 1-year EPS growth estimate (+11%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, SMCI has been a top-rated stock at MAPsignals for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this every week.

It’s made the rare Top 20 report numerous times the last year. The blue bars below show when SMCI was a top pick:

Tracking unusual volumes reveals the power of the MAPsignals process.

Super Micro Computer Price Prediction

The Super Micro Computer rally has been in place for months. 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 positions in SMCI at the time of publication.

Learn more about the MAPsignals process here.

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