Super Micro Computer Inc (NASDAQ:SMCI) shares are surging on Thursday. The Nasdaq is up 0.87% while the S&P 500 has gained 0.78%.

Retail traders are tracking a significant decrease in short interest. Data shows short interest fell from 86.79 million to 80.58 million shares recently. Currently, 17.73% of the company's float remains short.

It would take 2.89 days for shorts to cover their positions. This is based on an average daily volume of 27.89 million shares.

• Super Micro Computer stock is moving in positive territory. Why are SMCI shares climbing?

Earnings Beat Sparks Optimism

The rally follows a blowout third-quarter earnings report. Super Micro reported adjusted earnings of 84 cents per share. This beat the consensus estimate of 62 cents by 35.48%.

While revenue of $10.24 billion missed the $12.33 billion estimate, the bottom-line strength caught the Street’s attention. Global demand remains robust, with Rest of World revenue growing nearly 500% year over year.

AI Infrastructure Dominates Revenue

AI remains the primary engine for the hardware giant. Over 80% of quarterly revenue came from AI GPU-related platforms. The company is scaling fast to meet this demand.

Super Micro expects production capacity to exceed 6,000 high-performance racks per month. The company maintains deep ties with NVIDIA Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC).

Guidance Ahead of Estimates

Looking forward, management issued an upbeat fourth-quarter outlook. They forecast adjusted EPS between 65 cents and 79 cents. This sits well above the 55-cent analyst consensus. Revenue is projected to reach up to $12.5 billion.

Critical Technical Levels for SMCI Stock

From a trend perspective, SMCI is back above its key short- and medium-term averages: it's trading 11.5% above the 20-day SMA, 18.9% above the 50-day SMA, and 12.5% above the 100-day SMA. The bigger hurdle is the long-term trend, with shares still trading 10.5% below the 200-day SMA.

The moving-average structure is mixed: the 20-day SMA is above the 50-day SMA (a bullish near-term crossover), but the 50-day SMA remains below the 200-day SMA, reflecting the death cross that formed in December.

• Key Resistance: $33.50
• Key Support: $28.50

SMCI Stock Price Activity: Super Micro Computer shares were up 2.06% at $32.67 at the time of publication on Thursday, according to Benzinga Pro data.

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