Super Micro Computer (SMCI)
Super Micro was down sharply (-23%) on Friday for a few reasons:
- Tech stocks are jittery as they have led the market and near-term expected Fed interest rate cuts seem to be off the table.
- Super Micro has been on a run and, even after the pullback, is up over 150% this year.
- Super Micro announced that it will report earnings on April 30 without issuing its usual preliminary guidance, which spooked investors.
This is an aggressive, high-growth AI stock so pullbacks should be expected from time to time. This is why I have advised taking partial profits on the way up.
If you hold the stock, the best course is most likely to do nothing.
If you have not purchased the stock, this may very well be a time to buy.
Make sure you blend aggressive, disruptive stocks such as Super Micro with Explorer dominating blue-chip stocks and global ETFs to have a balanced portfolio.
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