Key Takeaways
- Super Micro Computer shares are plunging in intraday trading Friday after the artificial intelligence (AI) hardware maker didn’t preannounce its third-quarter fiscal 2024 results.
- The company, which has been a darling of the AI sector, has preannounced in seven of the last eight quarters, often boosting its previous expectations.
- Shares of Super Micro Computer have been declining since hitting an all-time high last month.
The recent slide in the stock price of Super Micro Computer (SMCI) accelerated Friday as the artificial intelligence (AI) darling surprised investors by not preannouncing its March quarter results.
The AI hardware maker, also known as Supermicro, has released a preliminary financial report in seven of the last eight quarters, usually providing estimates ahead of its previous outlook. However, on Friday the company simply announced that it will report third-quarter fiscal 2024 results on April 30.
Supermicro was one of the hottest stocks in the sector, driven higher by soaring demand for AI-related products. Shares hit a then-record $554.44 on Jan. 30, a day after the company posted better-than-expected Q2 results and boosted its full-year guidance. Supermicro had preannounced 11 days prior to that report.
Following the January report, shares continued to climb, peaking at $1,229.00 on March 8. However, they subsequently turned lower and—after Friday’s 19% plunge to $752.75 at 1:56 p.m. ET—are trading below $800 for the first time since late February. Still, they remain about 170% higher year-to-date.