Super Micro Computer shares fell 18% on Friday ahead of their earnings report later this month. The stock joined the S&P 500 in March and has surged 168% this year. Super Micro is a key vendor for Nvidia, which powers many AI models. The company will announce its third-quarter results on April 30, breaking from its usual pattern. Super Micro’s stock is on track for its biggest drop since February. Despite its ties to Nvidia, competition remains stiff, with companies like Dell and Hewlett Packard Enterprise also using Nvidia’s Blackwell GPUs for their systems.
Super Micro Computer shares experienced an 18% plunge on Friday as investors began to sell off some of their holdings in anticipation of the company’s upcoming earnings report. Despite this drop, Super Micro’s shares have still increased by 168% this year and 246% in 2023. The company is a key vendor for Nvidia, whose technology is essential for many artificial intelligence models in use today.
In a brief press release, Super Micro announced that it will report its fiscal third-quarter results on April 30, deviating from its usual practice of providing preliminary results. In January, the company had increased its sales and earnings guidance before announcing its second-quarter financials. This upcoming earnings report will give investors more insight into the company’s financial performance and growth trajectory.
Super Micro’s stock is currently experiencing its largest drop since February 16, when it fell by approximately 20%. While the company’s ties to Nvidia have been a major driver of its success in the market, competition remains fierce, with companies like Dell and Hewlett Packard Enterprise also planning to utilize Nvidia’s latest generation of Blackwell graphics processing units in their systems.
Overall, Super Micro’s stock has been a standout performer this year, but the upcoming earnings report will be an important milestone for the company as investors assess its financial health and competitive position in the market.
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