Super Micro Computer (SMCI), from the hardware and semiconductor industry, reported a big beat in earnings on November 2. The stock gapped out of a cup base and formed a 6 day handle. This bullish move has been presenting alternate entries as SMCI held its gains and traded sideways before breaking higher.
This morning semiconductors are trading higher, after a dip on Thursday.
Applied Materials (AMAT) is higher (+4.90%) on earnings.
Semiconductors and Tech In-Play
The company makes server and storage systems for data centers, cloud computing and artificial intelligence.
Fiscal first-quarter revenue surged higher by 79% to $1.85 billion, eclipsing a half dozen straight quarters of accelerating revenue growth.
Management reinterated bullish guidance for the current quarter. SMCI produced Q2 revenue of $1.7 billion to $1.8 billion, well above the $1.5 billion consensus. 2023 earnings popped to $10.10/share.
Management sees adjusted profit of $2.64 to $2.90 a share, also handily above the $1.91 consensus.
The company shows earnings growth of 38% with relative strength rising to a best of 99. Volume continues above average readings. Accumulation/distribution rating “A” tells us to look for this to continue as institutions accumulate positions.
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Vinny
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