Super Micro Computer Inc.'s (NASDAQ:SMCI) stock just sent a signal technicians rarely shrug off — and even Ken Griffin is feeling it. SMCI has now formed a Death Cross, with the 50-day moving average slipping below the 200-day, confirming that the stock's downtrend has deepened just as Citadel Advisors sits on a sizeable paper loss.
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For a name once grouped with the AI hardware winners, the chart has taken a clear turn.
SMCI Stock Momentum Has Broken Down
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SMCI is trading around $31.38, well below all key moving averages. The eight-day and 20-day averages sit in the low $33 range, while the longer-term 50-day and 200-day averages hover near $42 — highlighting just how far the stock has fallen from its 52-week high of $66.44.
Momentum indicators reinforce the weakness. The MACD (moving average convergence/divergence) indicator is deeply negative, pointing to accelerating downside pressure, while the RSI (relative strength index) near 32 suggesting the stock is approaching oversold territory. That combination often signals stress rather than stability, especially when rallies fail to reclaim broken averages.
The price action backs it up. SMCI is down about 28% over the past six months and nearly 8% in the past month, even as AI-linked narratives elsewhere continue to attract capital.
Read Also: Why Super Micro’s Future May Hinge On Nvidia Earnings
Big Money Is Feeling The Drawdown
The technical damage becomes more notable when viewed alongside hedge fund positioning. As of the end of the third quarter, Citadel Advisors disclosed a massive increase in its SMCI stake, lifting ownership by more than 750% to roughly 4.24 million shares.
That position carried an average buy price near $48.86. With the stock now trading in the low $30s, the position sits deeply underwater — a reminder that even institutional conviction doesn't override market momentum.
Why It Matters
Death crosses don't guarantee further downside, but they do change behavior. For SMCI, the signal shifts the narrative from dip-buying to damage control. Until the stock can reclaim key moving averages, rebounds risk being treated as exits rather than fresh entries.
With momentum broken and large holders under pressure, SMCI's next chapter won't be driven by hype. It will be decided by whether the chart can stabilize before sellers regain full control.
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