Bullish Breakout and Compliance Ahead

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Super Micro Computer (SMCI) is showing strong bullish momentum, with the $30 support level holding firm since November. A recent breakout from the downward trendline and a rising channel on the chart signal steady upward movement, with potential targets at $36, $42, and $46.

On the fundamental side, SMCI’s upcoming AI server releases are expected to drive significant revenue growth, keeping it competitive in the high-performance computing sector. However, recent challenges include delays in filing its FY2024 Annual Report and the resignation of Ernst & Young over governance and financial reporting concerns.

The company has formed a special committee to address these issues and plans to submit a compliance plan to Nasdaq to maintain its listing. While technicals are bullish, investors should monitor how SMCI resolves these concerns before making decisions.

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