What Happened?
Shares of server solutions provider Super Micro (NASDAQ: SMCI) jumped 6.1% in the morning session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels.
Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism.
The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.
After the initial pop the shares cooled down to $33.58, up 5% from previous close.
Is now the time to buy Super Micro? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Super Micro’s shares are extremely volatile and have had 91 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 20.5% on the news that the company reported underwhelming preliminary fiscal Q3 2025 results, with sales and earnings significantly below its previous guidance due to "some delayed customer platform decisions," which shifted sales into the next quarter. Precisely, SMCI expects Q3 2025 sales" of $4.5B to $4.6B (vs previous estimates "of $5.0B to $6.0B). Similarly, EPS is expected to come in at $0.29 to $0.31 (vs. previous guidance of $0.46 to $0.62).
Super Micro is up 11.7% since the beginning of the year, but at $33.58 per share, it is still trading 64.7% below its 52-week high of $95.24 from May 2024. Investors who bought $1,000 worth of Super Micro’s shares 5 years ago would now be looking at an investment worth $14,002.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
