Super Micro Drops Near Two-Month Low on Earnings Concerns

(Bloomberg) — Super Micro Computer Inc. shares are seeing their biggest drop in about two months on Friday, after the maker of servers announced the date of its third-quarter results but didn’t pre-announce results.

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The stock sank as much as 15%, its biggest one-day drop since February 23. The stock is also trading at its lowest since February. Shares of the company, a favorite play on artificial intelligence, have lost a third of their value since a March peak, though they remain up more than 180% this year.

Wells Fargo Securities wrote that Super Micro did not give a “positive preannouncement, which is being considered a negative,” along with an important AI datapoint. The firm has an equal weight rating on the stock.

The results will be released on April 30.

In January, Super Micro issued preliminary financial results that were seen as strong, sparking the stock’s 2024 rally. The stock has performed so well of late — jumping nearly 250% over 2023 — that it was added to the S&P 500 index in March.

Tech stocks are broadly lower on Friday, with geopolitical risks contributing to the Nasdaq 100 Index falling 0.9%. Among other AI stocks, Nvidia Corp shed 3% and Dell Technologies Inc dropped 1.6%.

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