The ongoing volatility in Super Micro Computer ($SMCI) stock has earned it a spot in the “hero to zero” club on Wall Street.
The infamous club is reserved for stocks that are so volatile they end up leading gains in the S&P 500 one day only to turn around and be the worst performing stock in the benchmark index the next day, or vice-versa. SMCI stock achieved the feat in recent days.
On November 25, Super Micro Computer’s stock gained 16%, making it the S&P 500’s biggest winner on the day. But on November 26, shares of the high-efficiency server maker plunged more than 10%, making it the worst performer among the 500 stocks listed on the index.
Other Volatile Stocks
Only six other stocks have managed to achieve hero to zero status this year, according to Dow Jones Market Data. Like Super Micro Computer, they are stocks that have been subjected to extreme volatility. The other roller-coaster stocks include International Paper ($IP), Globe Life ($GL), Albemarle ($ALB), Franklin Resources ($BEN), Dollar Tree ($DLTR), and Amentum Holdings ($AMTM).
Super Micro Computer’s stock has swung wildly throughout November as the company faced the threat of being delisted from the Nasdaq exchange on which it trades, announced it has hired a new auditor, and has got caught up in the movement of stocks tied to artificial intelligence (AI).
SMCI stock has moved 10% higher or lower in 10 of November’s 19 trading days. The company’s share price is up 23% this year.
Is SMCI Stock a Buy?
Super Micro Computer’s stock has a consensus Hold rating among 10 Wall Street analysts. That rating is based on two Buy, six Hold, and two Sell recommendations made in the last three months. The average SMCI price target of $39.43 implies 12.43% upside from current levels.
