1. SMCI shares rose 49% this week, marking a significant recovery. 2. The company announced shipment of servers with AMD EPYC 4005 processors. 3. A $20 billion deal with DataVolt enhanced market confidence in SMCI. 4. SMCI was the most-shorted stock, raising potential for a short squeeze. 5. Stock fluctuations remain high, down 60% from its all-time high.
The rising momentum and significant contracts can attract more investors, similar to previous surges. For example, stock climbed following earlier major deals in 2024.
The combination of new contracts and market positioning alongside a potential short squeeze amplifies impact. The market's reaction to SMCI's progress is critical, especially amidst its volatility.
The immediate gains are likely due to current market momentum and news-driven trading. Historical price spikes often revert in the following weeks.