Tech Bloodbath Bargains: Oracle, Palantir, and Super Micro Computer Hit Oversold Territory
Tech stocks got hammered—but these three players just flashed a rare buy signal.
The sector's brutal sell-off left Oracle, Palantir, and Super Micro Computer trading at fire-sale prices. While Wall Street panicked, contrarians see blood in the water—and opportunity.
Oversold doesn't mean over-loved. These stocks got dumped faster than a crypto exchange during an SEC lawsuit. But for investors with iron stomachs, the data suggests the punishment might've gone too far.
Just remember: 'Oversold' is Wall Street's polite way of saying 'everyone already bolted for the exits.' Proceed with caution—and maybe a stiff drink.
Super Micro Computer loses momentum as earnings miss hits confidence
Super Micro (SMCI) also landed on the oversold list this week with an RSI under 27 after the company’s shares lost 30% in November and dropped 45% from the peak it hit in February.
The latest selling wave came after the firm reported a first quarter that missed expectations on both revenue and earnings, and also showed a slimmer gross profit margin.
Analysts tracking SMCI through LSEG hold mixed views, with two calling it a strong buy, seven calling it a buy, and eight rating it a hold.
Even so, their consensus target still points to roughly 23% upside, showing that some on Wall Street still expect improvement despite the recent damage.
A one-year chart of the stock shows steep swings as traders reacted to changing growth hopes throughout the year.
Palantir battles valuation fears, Burry’s attack, and a wild chart reversal
Palantir became another focus after Jim Cramer reacted to comments from Carl Quintanilla about the company’s recent share move. Cramer said he wasn’t worried and described Palantir as a major player in defense and aerospace.
“I can’t back away from Palantir,” Cramer said while pointing at the profit run and rapid adoption under CEO Alex Karp. Cramer said every chief executive he checked with told him Palantir changed their company “radically,” and he also argued the firm could overhaul U.S. defense systems.
The stock took a hit right after earnings when it fell under $170, a MOVE tied to a short call from Michael Burry, who clashed with Alex during that period. The name then ran back to $190 in heavy trading.
The weekly chart shows a drop into an uptrend line from mid-2024 alongside the 20-week moving average, while the daily chart shows a round-trip move after the fight between Alex and Burry.
The stock broke below the 20-day, 50-day, and even the weekly trend before jumping back over $190 on volume over the 50-day average. At Inside Edge, the team is holding an 8.5% stake in the fast money book and a 2% stake in the flagship growth model.
They plan to add more if the name breaks into the $200 range. Traders will now wait to see if Burry repeats his real-estate short success or fails with this bearish call on the AI boom.
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