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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.