Supermicro was one of the most shorted S&P 500 tech stock in May

June 14, 2024 12:53 PM PDT | By Invezz

Supermicro was one of the most shorted S&P 500 tech stock in May — Image source: Invezz

What was Supermicro stock short interest in May?

Information technology weighs the most on the benchmark index and bets against it were up at large last month.

In May, short interest in the S&P 500 tech stocks climbed to 1.56% on average versus 1.42% in April.

But short interest in the high-flying SMCI stock far exceeded the average. At 7.26%, it was behind only two names in S&P 500 technology stocks in terms of short interest: Enphase Energy Inc and Western Digital Corp.

In late April, Supermicro said its revenue roughly tripled on a year-over-year basis to $3.85 billion in the first quarter but still fell short of $3.95 billion that analysts had forecast.

“We are growing our customer base strongly now”, said Charles Liang – chief executive of the Nasdaq-listed firm said at the time. Supermicro stock does not currently pay a dividend.

XLK – the technology select sector SPDR fund is up more than 20% for the year at writing.

Could SMCI shares be a target of short squeeze?

Even though the short interest in Supermicro shares was well above average for the S&P 500 technology stocks in May – it still does not put it at the risk of a short squeeze for several reasons.

To begin with, just over 7.0% is not a sufficient short interest for the retail traders to go after. Secondly, SMCI is not a penny stock and, therefore, is not subject to manipulation.

In April, Super Micro Computer raised its revenue guidance for the full year to the range of $14.3 billion to $14.7 billion. Analysts, in comparison, were at $14.60 billion. At the time, its CEO Liang also said:

Strong demand for AI rack scale PnP solutions, along with our team’s ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure. As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share.

Earlier in June, Barclays analyst George Wang maintained his “buy” rating on Supermicro stock. His $1,000 price objective suggests about a 20% upside from here. Watch here: https://www.youtube.com/embed/dz3VZ9OE82w?feature=oembed

The post Supermicro was one of the most shorted S&P 500 tech stock in May appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.