Super Micro Computer Inc. (NASDAQ: SMCI) fell sharply in premarket trading Monday, sliding below the $30 support zone as global equity markets reel from escalating U.S.-China tariff tensions. The stock is now testing the $27.85 demand area, a critical technical level last seen in November.
Investor sentiment turned sharply risk-off after President Trump announced a 34% tariff on Chinese imports, followed by a direct retaliation from Beijing. High-growth tech names with supply chain exposure and AI-driven valuation premiums like SMCI are among the hardest hit.
The broader Nasdaq 100 is under pressure, and semiconductors are leading the decline, compounding SMCI’s downside momentum.
A clean break below $27.85 could trigger a retest of the $17.60 zone, especially if market panic deepens and margin call pressure kicks in.
SMCI has lost nearly 50% from its 2025 peak, erasing most of the gains from its February AI breakout. The Relative Strength Index (RSI) continues to trend lower, suggesting weak momentum and limited appetite for dip-buying.
Until bulls reclaim $30.90, the path of least resistance is down.
SMCI remains a favorite in the AI hardware space, but rising tariffs and global trade instability are now overshadowing bullish earnings forecasts. With the U.S.-China trade war reignited, investors may rotate out of speculative tech and into safer assets.
Unless market conditions stabilize or earnings surprise to the upside, further weakness toward $25 or even $20 cannot be ruled out.
This post was last modified on Apr 07, 2025, 14:49 BST 14:49