Why Super Micro Computer Stock Is Falling Due to Nvidia and SoundHound AI News Today
Super Micro Computer (NASDAQ: SMCI) stock is pulling back in Wednesday's trading. The company's share price was down 2.9% as of 3 p.m. ET, according to data from S&P Global Market Intelligence. The otherwise red-hot artificial intelligence (AI) stock had been down as much as 4.6% earlier in the day's trading.
While there isn't any business-specific news driving Supermicro's stock lower today, the company's valuation is dipping due to developments for other high-profile AI companies. In particular, news surrounding Nvidia stock and SoundHound AI stock appears to be driving sell-offs for Supermicro today.
When it comes to shaping valuation moves in the broader artificial intelligence space, no company is more influential than Nvidia. The AI leader posted fourth-quarter results last week that crushed the market's expectations; the report powered big gains for its own stock and also had the effect of boosting share prices for other top AI players. On the heels of explosive gains, investors now appear to be cooling on Nvidia stock a bit.
Source Fool.com