Shares of Super Micro Computer Inc. (NASDAQ:SMCI) are experiencing their most significant decline in nearly two months on Friday, following the company’s announcement of the date for its third-quarter results without providing a pre-announcement of results.
The stock plummeted by as much as 15%, marking its largest one-day drop since February 23. Additionally, it is currently trading at its lowest level since February. Super Micro, known for its servers and considered a prominent player in artificial intelligence, has seen its shares decrease by one-third since reaching a peak in March, although they remain up over 180% for the year.
Wells Fargo Securities noted that Super Micro’s failure to deliver a positive pre-announcement, coupled with an absence of significant AI-related updates, is being interpreted negatively. The firm maintains an equal weight rating on the stock.
The third-quarter results are scheduled for release on April 30.
In January, Super Micro released preliminary financial results that were well-received, fueling a rally in the stock for the year 2024. The company’s recent strong performance, with shares surging nearly 250% throughout 2023, led to its inclusion in the S&P 500 index in March.
On Friday, broader declines in tech stocks were observed, with geopolitical concerns contributing to a 0.9% drop in the Nasdaq 100 Index. Among other AI-focused stocks, Nvidia Corp (NASDAQ:NVDA) fell by 3%, while Dell Technologies Inc (NYSE:DELL) declined by 1.6%.
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Author Faith Yakubu 
