Levels I'm watching: $54.75, $52.5, $52, $50
SUPER MICRO COMPUTER INC stock forum
Levels I'm watching: $54.75, $52.5, $52, $50
BLOOMBERG
Economists have long been warning of a tariff-driven boost to US inflation, which will be tested in the next report on consumer prices.
Forecasters predict an acceleration in June data due to advances in tariff-exposed categories, including furniture, toys, and cars.
According to Gregory Daco, EY-Parthenon Chief Economist, tariffs will drive a third of the overall monthly advance, with a bigger hit to come later in the summer.
1. Nvidia allowed to sell chips to China
The U.S. just greenlit Nvidia’s H20 AI chip exports to China—big catalyst for semiconductor suppliers like SMCI. Nvidia itself popped ~3% overnight, and other chip-linked stocks followed suit, including SMCI
What this means for SMCI: With Nvidia's win, supply optimism is back. SMCI could ride that wave into the open.
2. TSMC earnings this week
TSMC’s results are due Thursday. They're central to the semiconductor supply chain narrative. If TSMC beats (forecast growth ~40%), that’s bullish for SMCI too .
But if TSMC stumbles or warns on China/Tariff issues, SMCI could reverse course.
3. June CPI release this morning
CPI is expected around +0.3% month-over-month and 2.6–2.7% year-over-year
A hotter-than-expected print ➝ Fed might hold off on rate cuts. That typically weighs on tech. A softer print ➝ risk-on, tech rally. Easy correlation: SMCI follows that.
How I see it playing out
Base case: CPI in line → modest rally in tech. Coupled with Nvidia shipping to China → SMCI opens slightly positive, maybe up 1–3%, hitting $51–52 early.
Bull case: Strong Nvidia + strong CPI print (but still manageable inflation) → further upside, $52–54 range.
Risk case: CPI overblows (say +0.5% monthly), which spooks markets, or TSMC warns later this week → possible early drop back to mid-$49s, maybe even $48.
The odds favor slight upside initially. Nvidia’s China win is a real near-term positive, and if CPI isn’t a shock, tech should hold firm. But macro surprises or risks tied to TSMC later this week could cap gains.
So given the overnight $51.08:
Optimistic scenario: crack $52 today.
Neutral: hover between $50–51.
Downside: dip back to $49‑49.5.
Watch CPI at 8:30 am ET—it’s the immediate catalyst.
No financial advice