Business
Super Micro Plunges Ahead Of Earnings As Investors Rotate Out Of Hot AI Stock
(CTN News) – Super Micro Computer shares plunged 18% on Friday as investors reduced their holdings of one of the market’s hottest stocks ahead of the company’s earnings report later this month.
Super Micro shares have been 168% up this year after joining the S&P 500 in March of this year. Even after doing so, the shares are still up 246% from the same period a year earlier.
The Super Micro company is a primary vendor for NVIDIA, whose proprietary technology is the base for today’s most powerful artificial intelligence models and whose technology is the basis for most of them that can be implemented today.
As announced in the company’s press release on Friday, the company will report the financial results of its fiscal third quarter for April before the end of this month, according to the press release.
There was a change in the company’s pattern of providing preliminary results, which had been very common in the past.
The second quarter of 2008 was the first time Super Micro had raised its revenue and earnings guidance since it had announced its second quarter results 11 days earlier.
On the surface, it might seem as if the stock was headed for the steepest drop since it dropped nearly 20% on February 16, which was when it started its downward trend.
Even though Super Micro has been benefiting from Nvidia’s presence in the market, competition remains extremely fierce, with competitors such as Dell and Hewlett Packard Enterprise planning to introduce systems that will employ Nvidia’s latest generation of Blackwell graphics processing units in order to win market share.
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