Super Micro’s Volatile Run Continues As Stock Teeters Around $40 Following 9% Drop: Retail Turns Constructive

Super Micro Computer, Inc. ($SMCI) stock pulled back sharply on Tuesday, a day after traders bid up the stock on the relief that the artificial intelligence server maker dodged the delisting bullet, at least for now.

At last check, the stock was down 8.26% at $40.51, having traded in the $39.78 to $43.35 range.

Late Friday, Super Micro confirmed that the Nasdaq granted time until Feb. 25, 2025, to file its annual report on Form 10-K for the fiscal year ending June 30, 2024, and its quarterly report on Form 10-Q for the period ending Sept. 30, 2024. 

Reacting to the news, the company’s shares rose as much as 9.3% intraday on Monday before giving back most of the gains. At the close, the stock was up 0.52% at $44.16. 

Tuesday’s weakness comes amid lingering worries about whether Super Micro can meet the late-February deadline and the declines in some AI-levered stocks.

Retail, however, is optimistic. A poll run by Stocktwits showed that 84% of the respondents expected Super Micro to file its quarterly report by the Nasdaq-granted deadline. 

Among AI news flow, Taiwan Semiconductor Manufacturing Co. Ltd. ($TSM), the world’s biggest chip supplier, reported a 12% month-over-month drop in November revenue.  On a year-over-year basis, revenue was up a solid 34% but the stock slipped over 2%.

Shares of enterprise AI software applications company c3.ai, Inc. ($AI) were down about 0.50% after it widened its full-year loss guidance. The 10-Q report filed with the SEC showed CEO Thomas Siebel adopted a plan to sell 12.78 million Class A shares of the company, with the plan set to expire by Dec. 17, 2026.

Retail sentiment toward Super Micro’s stock improved from ‘bearish’ a day ago to ‘bullish’ (60/100), with message volume remaining ‘normal.’

SMCI sentiment and message volume December 10, 2024, as of 11:33 am ET | Source: Stocktwits

A Stocktwits user saw the plunge as normal for volatile stocks, especially after big run-ups.

Another said he would use the opportunity to “re-load.” 

Notwithstanding the stock volatility, Super Micro’s shares are up over 55% for the year, although they are trading well off the March 8 intraday high of $122.90.

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