Why Super Micro Computer Stock Tumbled This Week
Super Micro Computer (NASDAQ: SMCI) stock has been a market darling over the last year. But that led to pretty high expectations heading into its most recent earnings report. While the report was solid in many ways, investors seemed to think the stock price had run too far, too fast, ahead of the report.
Supermicro stock plunged after the quarterly report and is lower for the week by about 8% as of Friday morning trading, according to data provided by S&P Global Market Intelligence. Yet shares of the provider of graphics processing unit (GPU) and storage servers have still soared by 625% over the past 12 months.
Supermicro has been riding what has become an artificial intelligence (AI) supercycle. Sales of the company's server and storage systems that are filling up quickly growing data center capacity have been soaring. In the first nine months of Supermicro's fiscal 2024 (ended March 31, 2024), sales of $9.63 billion nearly doubled from the comparable prior-year period.
Source Fool.com
