Semiconductor stocks connected to the artificial intelligence sector attempted to recover on Monday after experiencing a significant sell-off on Friday. Super Micro Computer (SMCI), the company that triggered the downturn in AI stocks, continued to decline.
Investors reacted nervously on Friday following Super Micro’s announcement of the date for its upcoming quarterly earnings report without providing preliminary results. This move led to a massive sell-off in AI stocks, particularly semiconductor stocks.
In the past 10 quarters, Super Micro has typically released preliminary results alongside the announcement of its quarterly earnings date. The absence of this update last week resulted in concerns among investors, with Wedbush Securities analyst Matt Bryson noting that the lack of a preannouncement from SMCI weighed heavily on the stock and the broader AI supply chain.
Super Micro specializes in producing server computers for data centers and AI applications. The growing trend of generative AI has driven its business growth, particularly with hyperscale cloud service providers.
Despite the drop on Friday, Super Micro’s stock price fell further on Monday, decreasing by 1.6% to 702.16. Meanwhile, Nvidia saw an increase of 2.7% to 782.66, attempting to rebound after a 10% decline at the end of last week.
Recent IPO Astera Labs, a company that manufactures connectivity chips for AI systems, also saw a positive movement with a 3.6% increase on Monday. Micron Technology, known for producing advanced memory chips for AI systems, experienced a rise of 1.3% as well.
In summary, the AI sector, particularly semiconductor stocks tied to artificial intelligence, faced a challenging period last week but showed signs of a rebound on Monday. Investors are closely monitoring the developments in this space to assess the impact on future market trends.
