10 Stocks Drop by Double Digits Mostly Due to Disappointing Earnings

4. Super Micro Computer Inc. (NASDAQ:SMCI)

Super Micro fell by 15.97 percent on Thursday to finish at $42.95 apiece as investors resorted to profit-taking following a surge earlier in the week after meeting the February 25 deadline to keep its position as a listed company on Nasdaq.

In addition, an investment research company gave SMCI a pessimistic outlook, underscoring concerns about the strength of the business’s competitive moat and ongoing reputation issues tied to accounting concerns.

While Barclays acknowledged SMCI’s leadership position in the artificial intelligence industry, it said the company bears too much risk to give it a ‘buy’ rating.

In its delayed filing, SMCI said sales in fiscal year 2024 more than doubled to $14.99 billion year-on-year on the back of growing demand for its products to support artificial intelligence.

Earlier this month, SMCI said revenue could hit $40 billion in fiscal year 2026 after reaching $23.5 billion to $25 billion in 2025.