Friday, April 19, 2024

"Nvidia, AI Stocks Catch A Cold After Super Micro Computer Sneezes"

It was one heck of a sneeze, one of those covid sneezes you really did not want to hear coming from behind you on the plane. SMCI down $214.83 (23.14%) at $713.65.     

From Investor's Business Daily, April 19, 04:28 PM ET:

AI chipmaker Nvidia (NVDA) saw its shares dive on Friday after key hardware partner Super Micro Computer (SMCI) announced its next earnings date without giving preliminary results. Nvidia stock fell in tandem along with other highflying AI stocks.

On the stock market today, Nvidia stock sank 10% to close at 762.

The drop came after data-center hardware specialist Super Micro revealed that it will release its fiscal third-quarter results on April 30. But unlike recent quarters, it didn't update its sales and earnings guidance.

Super Micro stock plummeted 23.1% to close at 713.65.

AI Stocks Lose Their Luster
That took the shine off AI stocks, which have skyrocketed on heavy investments by cloud computing service providers building systems for generative artificial intelligence.

Shares of Nvidia rival Advanced Micro Devices (AMD) dropped 5.4% Friday to 146.64.

Chip designer Arm Holdings (ARM) saw its stock fall 16.9% to 87.19. Recent IPO Astera Labs (ALAB), which makes connectivity chips for AI systems, saw its shares sink 9.1% to 64.49....


Earlier at IBD (just before the close):

Nvidia Stock Plummets In Broad Market Sell-Off