We recently published an article titled Trade Tensions Weigh Heavily on 10 Stocks. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other stocks.
The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s imposition of additional 10-percent tariffs on China, and the resumption of 25-percent taxes on Mexico and Canada.
The tech-heavy Nasdaq posted the biggest losses, down 2.64 percent, followed by the S&P at 1.76 percent and the Dow Jones at 1.48 percent.
According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10 percent tariff on goods from China.
The overall sentiment spilled into the performance of 10 companies, which on Monday lost as high as double digits.
To come up with Monday’s top losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Super Micro Computer, Inc. (NASDAQ:SMCI) extended its losing streak for a third straight day on Monday, slashing 13 percent to close at $36.07 apiece as investor sentiment was dampened by news that the Singapore government was investigating whether servers shipped to Malaysia containing chips barred from China ended up in the mainland.
On Monday, Singapore’s law minister outlined specifics of the probe after news reports that police arrested several people for their key roles in procuring and shipping Nvidia chips which are in violation of US sanctions.
Authorities are now investigating if the servers, made by Dell and Super Micro Computer, Inc. (NASDAQ:SMCI), made their way to other countries and to the mainland.
The case came weeks after Bloomberg News reported that the US was investigating whether Chinese artificial intelligence startup DeepSeek had bypassed US chip restrictions with the help of third parties in Singapore.
Overall SMCI ranks 6th on our list of Monday’s top losers. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMCI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
