AI Server Suppliers: SMCI, DELL, HPE

Investing Strategies Technical Trader's Sanctuary
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It is clear that if NVDA is selling tons of chips, then they have to be put in a server before going in a data center. SMCI became famous for their water cooled servers, but now DELL and HPE are showing they too can build effective and efficient servers. So which of these charts would you buy today (if any), and why now.

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My thougths:
HPE is forming a tight flag after a huge run up after earnings. If that can stay intact another week or so, a breakout from there is a good buy. If it pops above it tomorrow, is it too soon?

DELL: gapped down on lower than expected earnings, but found support at 50dma for a while and today popped above the 21dma. I would say this is a buy today. Strong volume today, +148% above average (for this time of day over last 50 days)

SMCI: has spent a lot of time living below the 50dma, came above it for a while and could not hold. Made it above 50dma a couple days ago. 21dma below 50dma. Above avg vol today and when it came above 50dma two days ago.

OK, I convinced me, I am buying some DELL. Thanks!

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My Last buy was ASPN as it was sitting in a tight on the weekly chart. The proper buy point was at $31.84 but I bought at $30.93. It never hit $31.84 so that could be a mistake but my stop is at $28.45 which it hasn’t hit either. I like the way this stock is acting and notice all the Ants on the daily chart.

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Andy

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I liked ASPN and was waiting for a breakout when it skyrocketed on earnings. I think IBD guys might say it needs to consolidate before buying, which it might be doing, but they would want a breakout above the consolidation. They also say things like “it’s really extended from the 50dma so you probably don’t want to buy it here”. So like me, this seems like an emotional buy that breaks the rules, which diminishes your probabilities of success.

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