Super Micro (SMCI) stock jumped on Monday as the data center firm preps plan to avoid NASDAQ delisting.
The company will reportedly file a plan with the Nasdaq Stock Market on Monday that will allow the data center specialist to avoid being delisted from the exchange.
Stock surged more than 25%, back above psychological support at $20.
The stock’s 50-day moving average is in a bearish pattern, but is well above the stock’s current price so is not a risk of acting as technical resistance.
The stock’s 20-day moving average is priced at $30. This is the “Trader’s Trendline” and it may provide resistance if SMCI shares are able to rally that high.
Even if the company does avoid delisting, shares are likely to remain the target of the bears as further investigations into the company’s accounting practices will create a shadow.
Investors should also watch NVIDIA’s earnings on Wednesday afternoon. SMCI has been the largest customer for SMCI’s chips as the company gears their servers and equipment for customers.
A break back below $20 will see the stock to lower prices.
Dell Technologies (DELL) is one of the larger cap tech companies that is starting to potentially fill the void that Super Micro Computer may leave in the AI industry.
Super Micro Computer may be trading higher today as the company may avoid delisting, but customers are looking outside of SMCI for other AI server solutions.
Dell announced another round of server product enhancements on Monday as it looks to take advantage of SMCI’s corporate problems and image.
Shares of Dell are trading 80% higher for the year.
Dell stock is trading about its short- and long-term moving averages.
Shares are preparing to break above $140. A break above this key price would trigger another round of buying that will likely target a $180 price over the next year.
This morning’s announcement that the Trump administration may look to review the regulatory environment for autonomous vehicles send shares of Uber (UBER) lower for the day.
The ride sharing stock lost more than 5%, dropping below $70.
Last month, shares of Uber started a decline from their highs above $85 as Elon Musk took a front-facing role in President-elect Trump’s campaign.
Uber investors feared that a Trump-Musk partnership could evolve into an opportunity for Musk’s robotaxi project.
The implications of Uber’s decline now appear to be validated by this morning headlines.
Today’s break below $70 is the first since September. Before that, Uber stock found a bottom around $60, a price that the stock is likely to see again.
