The Dreaded Cramer Curse Strikes Super Micro Computer (SMCI) Just Ahead of NVIDIA’s Earnings
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Super Micro Computer shares (NASDAQ: SMCI) were on course to eclipse Tesla's blistering 3,413 percent rally recorded in the 29 months between 2019 and 2021, pumped by the ongoing mania on steroids around everything AI-related. Yet, this speculative frenzy appears to have been slayed by that sword of Damocles for the modern-day stock market trader - the dreaded Cramer curse that ensues almost every major endorsement by CNBC's Jim Cramer.
Cramer's ability to parrot the market's consensus view is legendary. Unfortunately, his roving eyes tend to land on a particular stock only when the laws of gravity are about to exert their influence, equipped with all of the self-righteousness that must necessarily accompany the market's senile tendencies.
Related Story 12V-2×6 “H++” Connector Offers Up To 675W GPU Power Delivery Versus 600W 12VHPWR “H+” Plug
Super Micro Computer's Explosive Rise
Just around 1 year ago, Super Micro Shares were trading at a price of around $88. Last Thursday, the stock eclipsed the $1,000 price level, corresponding to gains of over 1,000 percent!
At the heart of Super Micro Computer's blistering rally is the stock's close association with the darling of the AI world - NVIDIA. To wit, SMCI's biggest client is NVIDIA, and its second-biggest client is an entity that is backed by NVIDIA.
For the benefit of those who might not be aware, Super Micro Computer manufactures high-performance servers, which are in high demand right now, given the ongoing gold rush to train and deploy AI-powered solutions for diverse products and services.
As this AI-driven rally in Super Micro Computer shares entered its "blow the lid off" phase in January 2024, the Fintwit community started drawing parables with Tesla's blistering rally in 2019 - 2021, when the high-flying EV stock registered gains of 3,413 percent in just 29 months. If
Read more on wccftech.com
