Super Micro Computer, which has seen significant growth due to the demand for its AI-equipped servers, did not provide a positive preannouncement, which was perceived negatively by Wall Street. The company's stock had previously surged by over 1,000% in a year, leading to its inclusion in the S&P 500 from the small-cap Russell 2000 index. The potential weakness in Super Micro Computer's earnings report led to speculation about Nvidia's performance, resulting in a market cap decline of $183 billion for Nvidia.
Key takeaways:
- Super Micro Computer's stock crashed by 23% on Friday after the company announced the date of its Q3 earnings, without preannouncing the earnings as it did last year.
- The lack of a preannouncement has sparked concerns that the company's upcoming earnings report may not meet analyst expectations.
- The sharp decline in Super Micro Computer's stock also affected Nvidia, which saw its shares plunge by about 10%, resulting in a market cap decline of $183 billion.
- Super Micro Computer has seen significant growth over the past year due to the demand for its AI-equipped servers, and its stock surged more than 1,000% in a year, leading to its inclusion in the S&P 500.