Super Micro Dips Near 2-Month Low on Earnings Worries


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 as much as 15%, marking its largest one-day drop since February 23. Additionally, it is currently trading at its lowest level since February. Despite a strong performance earlier in the year, with shares surging over 180% in 2024, the stock has lost a third of its value since reaching a peak in March.

Wells Fargo Securities noted that the absence of a positive preannouncement from Super Micro, coupled with an important artificial intelligence (AI) data point, is perceived as negative. 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 provided preliminary financial results that were well-received by investors, fueling a rally in the stock in 2024. The company’s robust performance led to its inclusion in the S&P 500 index in March.

On a broader scale, technology stocks are experiencing a downturn on Friday, with geopolitical concerns contributing to a 0.9% decline in the Nasdaq 100 Index. Among other AI-related stocks, Nvidia Corp (NASDAQ:NVDA) dropped 3%, while Dell Technologies Inc (NYSE:DELL) saw a decline of 1.6%.

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