New York, January 16, 2026, 11:59 EST — Regular session
- SMCI shares jumped roughly 7% in late-morning trading, riding the wave of gains across chip-related stocks
- Monthly options expiration fuels extra volatility ahead of the long weekend
- Attention now turns to next week’s earnings reports and the Fed meeting scheduled for Jan. 27-28
Super Micro Computer shares jumped Friday, lifted by a rally in chip-related stocks that boosted the AI server maker. By 11:59 a.m. ET, SMCI was trading 7.4% higher at $31.60, swinging between $29.62 and $32.20. More than 35 million shares changed hands.
The market remains driven by semiconductors, where memory-chip stocks pushed gains higher and the iShares Semiconductor ETF jumped 2.1%. U.S. markets will be closed Monday for Martin Luther King Jr. Day. Investors are bracing for a busier earnings week ahead, with Intel among the key reports to watch.
Options traders had their eyes on Friday, marking the monthly expiration as a possible spark for bigger moves once major hedges expire. These contracts let investors buy or sell shares at a predetermined price by a deadline, and expirations often intensify daily swings as positions adjust. “I think this options expiration will allow the S&P 500 to start moving around a bit more,” said Brent Kochuba, founder of options analytics firm SpotGamma. The Fed’s Jan. 27-28 meeting is also on traders’ radar as a key upcoming event. Reuters
The chip rally failed to take off Friday. The previous day, semiconductor stocks jumped after Taiwan Semiconductor Manufacturing Co predicted strong annual growth and highlighted expanding U.S. production capacity, boosting U.S.-listed TSMC shares by 4.4%. “That’s been kind of squashed this morning with the news from Taiwan Semiconductor,” said Alan Lancz, president of Alan B. Lancz & Associates, pointing to renewed tech valuation concerns. Reuters
Super Micro sells servers for AI data centers, a sector closely tied to the chip supply chain’s swings, especially when investors collectively shift in or out of “AI hardware” bets. The company also competes in a crowded space, with bigger systems vendors stepping up efforts to offer AI-ready racks.
Analysts are divided on the staying power of SMCI’s next growth phase and how much expansion it can sustain without hurting profits. A note from Zacks this week highlighted recent headwinds following Goldman Sachs’ sell rating and $26 price target, which cited tightening margins and intensified competition. The note also mentioned an anticipated fiscal second-quarter report set for Feb. 24, although the company hasn’t officially confirmed that date.
The stock has been attempting to regain lost ground following a tough run. SMCI ended Wednesday at $28.27, hanging roughly 57% below its 52-week peak of $66.44 hit on Feb. 19, according to MarketWatch data.
But the bounce could vanish quickly. Should the chip rally lose steam or options-driven flows shift after expiration, Super Micro might surrender gains just as fast. Investors don’t have much new company news to hold onto either.
Currently, the company’s investor relations page shows no scheduled events, pushing traders to rely on estimates and cues from the broader sector.
Looking ahead, traders face a shorter week, a packed earnings schedule, and the Fed’s policy meeting on Jan. 27-28. For SMCI, the key upcoming event will be when it sets the date for its next quarterly report — and the details it provides about margins and delivery pace at that time.
