Home » Super Micro shares plunge 23 percent

Super Micro shares plunge 23 percent

by admin
Super Micro shares plunge 23 percent

Yuichiro Chino/Getty Images

Shares of Super Micro Computer plunged 23 percent on Friday (April 19) after the company announced its third-quarter earnings date.

Wall Street appeared disappointed that Super Micro Computer didn’t announce earnings in advance like it did last year.

The sharp decline also saw AI darling Nvidia fall by around ten percent.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Shares of Super Micro Computer, an AI hardware provider, plunged as much as 23 percent on Friday (April 19) as investors worry about the strength of its upcoming earnings report.

Super Micro Computer announced, the company will report its third-quarter results on April 30. However, the AI ​​hardware provider did not announce any results in advance, as it did with its second-quarter results in January.

The lack of an earnings announcement dampened analyst expectations

Companies often announce their results in advance when the results are significantly above Wall Street consensus estimates.

Super Micro Computer’s lack of an earnings call has raised concerns on Wall Street that the company’s upcoming earnings report won’t be as strong as last quarter and could ultimately miss analysts’ expectations.

Super Micro Computer offered Wall Street “no positive advance notice, which is viewed as negative,” Wells Fargo Securities wrote Friday, according to business magazine Bloomberg.

The company has experienced insane growth over the past year as demand for its AI-equipped servers has soared. The stock, which has risen more than 1,000 percent in a year, was catapulted from the small-cap Russell 2000 index into the S&P 500 earlier this year.

Nvidia chips are used in Super Micro Computer’s server solutions, so investors appear to be transferring potential weakness in Super Micro Computer’s upcoming earnings report to Nvidia.

See also  Stocks: Perpetual returns plus AI fantasy - these 11 stocks make the perfect mix

Nvidia shares plunged as much as 10 percent, causing its market capitalization to fall by $183 billion.

Markets Insider

External content not available

Do you have a contentpass subscription but still don’t want to miss out on displaying external content from third-party providers? Then click on “agree” and we will integrate external content and services from selected third-party providers into our offer to improve your user experience. You can view a current list of these third parties at any time in your privacy (link to privacy). In this context, usage profiles (including based on cookie IDs) can also be created and enriched, even outside the EEA. In this case, your consent also includes the transfer of certain personal data to third countries, including the USA in accordance with Article 49 Paragraph 1 Letter a) GDPR. Further details on data processing can be found in our data protection information and privacy policy, which are available at any time in the footer of our offer. You can exercise your consent to the integration of external content at any time in the footer of our offer via the “Revocation Tracking” link.

Agree and view external content

Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy