Semiconductor stocks tied to the artificial intelligence boom rebounded on Monday after Friday's ugly sell-off. Meanwhile, Super Micro Computer, which sparked the sell-off in AI stocks, wavered but ended the regular session with a slight gain.
Skittish investors sold off AI stocks, especially semiconductor stocks, on Friday after Super Micro announced the date for its next quarterly earnings report without giving preliminary results.
In seven of the past 10 quarters, Super Micro has released preliminary results with the announcement of its quarterly earnings date. That included the last two March quarters.
"It had been widely assumed that SMCI would preannounce upside to guidance last week, instead of just providing an earnings date," Wedbush Securities analyst Matt Bryson said in a client note Monday.
"As such, the lack of a preannouncement weighed substantially on the stock Friday as well as the broader AI supply chain, including Nvidia, given concerns SMCI's lack of upside suggests AI demand might be slowing," Bryson said.
AI Stocks Mount Comeback
In morning trades on the stock market today, Super Micro stock fell as much as 6% to 671. But it recovered to end the regular session up 0.5% to 717.02. On Friday, SMCI stock plunged 23.1% to close at 713.65.
Super Micro specializes in making server computers for data centers and artificial intelligence. The generative AI trend has boosted its business with the hyperscale cloud service providers.
Elsewhere among AI stocks, Nvidia stock climbed 4.4% to close at 795.18 on Monday. On Friday, shares of the graphics-chip maker slumped 10% to close at 762.
Nvidia rival Advanced Micro Devices saw its shares rise 1.4% to 148.64 on Monday. On Friday, AMD stock dropped 5.4% to 146.64.
Chip designer Arm Holdings watched its shares jump 6.8% to 93.11 on Monday. On Friday, Arm stock plummeted 16.9% to 87.19.
Recent IPO Astera Labs, which makes connectivity chips for AI systems, saw its shares spring 2% higher on Monday to 65.79. On Friday, Astera Labs stock sank 9.1% to 64.49.
Micron Technology, which makes advanced memory chips for AI systems, saw its shares rise 2.2% to 109.12 on Monday. On Friday, Micron stock dropped 4.6% to 106.77.
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