Super Micro Computer Inc (NASDAQ:SMCI) shares are trading higher on Wednesday. The move follows a broader market relief rally.
Tech Sector Rebounds
Wall Street indices are rebounding today. The Nasdaq gained 1.22% while the S&P 500 rose 0.68%. High-beta technology and AI infrastructure names are leading the charge.
This follows news that President Donald Trump extended the Iran ceasefire. Investors are rotating back into growth names as global worries taper off.
Short Interest Declines
Recent data shows a shift in bearish sentiment. Short interest in Super Micro Computer fell from 88.48 million to 83.19 million shares.
Short sellers now hold 18.31% of the company’s float. At current volumes, it would take 1.35 days for shorts to cover their positions.
Edge AI Expansion
Last week, the company launched new compact edge AI systems. These systems use Advanced Micro Devices, Inc. (NASDAQ:AMD) EPYC 4005 processors.
The hardware targets real-time workloads in retail and healthcare environments.
Technical Analysis
SMCI is still working to rebuild its longer-term trend after a steep drawdown from its 52-week high. The stock is trading 18.6% above its 20-day simple moving average (SMA) and 2.7% below its 100-day SMA.
The moving average backdrop is still mixed: the 20-day SMA remains below the 50-day SMA, and the death cross that formed in December, with the 50-day falling below the 200-day.
On a longer lens, the stock is down 4.81% over the past 12 months. The 200-day SMA is far overhead, and the stock is still well below the 52-week high of $62.36.
- Key Resistance: $33.50
- Key Support: $28
SMCI Price Action: Super Micro Computer shares were up 2.06% at $29.01 at the time of publication on Wednesday, according to Benzinga Pro data.
Image via Shutterstock
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