Super Micro Computer (NASDAQ: SMCI) stock price has gone parabolic as the Fear of Missing Out (FOMO) continues. It surged to an all-time high of $1,160 on Thursday and continued with the rally in the pre-market session.
This means that the company has jumped by over 307% this year and over 1,100% in the past 12 months. In other words, $10,000 invested in the stock in January 2023 is now worth over $40,000. The company’s market cap has surged to over $65 billion.
Super Micro Computer stock price has broken two important personal records. First, it has risen in the past ten straight weeks, something it has never done before. This rally happened as investors loaded into the company after its spectacular financial results.
The results showed that the company’s revenue jumped to over $3.6 billion in the fourth quarter, up from $1.8 billion in the same quarter in 2022. Its net income also jumped from more than $176 million to over $296 million.
The management also issued an upbeat forward guidance, saying that the company was seeing unprecedented demand because of artificial intelligence (AI).
Further, Super Micro Computer continued its surge after the strong Nvidia earnings. The company said that its revenues jumped by over 200% in Q4 as data centre demand soared.
SMCI stock price has gotten overbought
The other record is that SMCI stock price has become the most overbought it has been on record. As shown above, the Relative Strength Index (RSI) has surged to 94.50 on the weekly chart. It crossed its previous record of 89.81, which it reached in June last year.
It has also become severely overbought in other indicators. The Stochastic RSI has moved to an all-time high of 100.60. Also, the Money Flow Index (MFI) soared to a record high of 95.05 last week and has pulled back slightly.
Being overbought is a sign that an asset has significant momentum and that it could continue rising in the near term. However, it is also a sign that a correction may happen soon. This retreat could see it drop below $1,000 in the next few weeks as some of its investors start to take profits.
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