Shares of AI chip companies plunged several percent yesterday📉
Shares of Nvidia $NVDA+3.5%were in a selling trend after an analyst pointed out that Super Micro Computer $SMCI+2.6%, another big player in AI, failed to present preliminary earnings, raising doubts about upcoming results.
Super Micro Computer
SMCIThe news may have caused Nvidiashares to fall by 10 %while Supermicro $SMCI+2.6% lost 23,14 %However, other ARM stocks also fell, with$ARM+3.8% writing off more than 15 % and AMD $AMD+3.0% more than 5 %. 📉💼
Nvidia
NVDAMeanwhile, shares of AI companies have risen rapidly thanks to massive interest in this breakthrough technology.
However, as this week's selloff suggests, most of those gains were more a result of sentiment and fears of missing out of the AI boom.
When stocks reach hundreds of percent gains, as they did for companies Nvidia a Supermicro...it may take little to dissipate some of the profits. That seems to have happened in this case as well. 💭
Analyst from Wells Fargo noted that Supermicro did not provide its usual preliminary earnings report, which may mean its quarterly results are not as strong as expected. However, sentiment in the AI space tends to move these stocks at the same time, so the share price drop in other companies is not surprising.
I'll be sure to keep an eye on the earnings report Supermicrothat will be released April 30 after the market closes, as it will confirm or deny yesterday's events.
I expect that after these reports are released, stocks focused on AI will move in tandem with Super Micro Computer.
What do you think of the overall boom around AI-focused companies 📊🔍?
You can see the drop there nicely, but as Christopher writes, those prices are still high.
To buy big tech for sure, we will see this week after the results.
Yeah, this week is going to be interesting😁
It was coming down nicely towards the end of the week... :) But so far it's all very much up. If there were more weeks like this in a row now, I might even buy something.
I'd rather see even lower prices, too. That end of the week was very interesting.
We'll see how it starts today. Premarket is green so far, but that doesn't mean anything yet😅
So it looks like the markets have pretty much held their own for today.
It was dropping nicely towards the end of the week... :) But so far it's all very much up. If there were more weeks like this in a row now, I might even buy something.