The Nasdaq is down 2.26% while the S&P 500 has shed 1.35%.Stock traders focused instead on preliminary gross margins of 15% to 17%, up from previous guidance of 8.2% to 8.4%, and "more than $60 billion" in new AI infrastructure orders.Revenue Takes A Backseat To ProfitabilityDuring the AI expansion, traders evaluated companies based on revenue growth and GPU shipments. Super Micro Computer challenged those metrics by delivering higher profitability despite forecasting lower-end revenue.Management attributed the higher gross margins to a "favorable customer and product mix," indicating customers are purchasing richer AI system configurations. Product mix improvements signal potential pricing power and stronger demand for premium offerings alongside a record order pipeline.Technical AnalysisSMCI is trying to stabilize after a steep 12-month slide of 39.69%, and today’s push has the stock trading 12.2% above its 20-day SMA ($27.75), a sign the near-term trend has improved. The bigger picture is still mixed-to-bearish because it remains 5% below its 50-day SMA ($32.79) and 7.3% below its 200-day SMA ($33.59).
Key Resistance: $36.50 — a nearby ceiling where rebounds can stall, sitting above the 50-day and 200-day moving averages that the stock still needs to reclaim
