Why Super Micro Computer Inc. (SMCI) Crashed On Tuesday?

We recently published a list of 10 Firms Heavily Hit by Market Pessimism. In this article, we are going to take a look at where Super Micro Computer Inc. (NASDAQ:SMCI) stands against other firms heavily hit by market pessimism.

Wall Street finished in the red territory on Tuesday, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq dropped the highest among its peers, declining 1.71 percent. The S&P 500 followed with a 1.07-percent loss, while the Dow Jones decreased by 0.62 percent.

The market pessimism spilled over to various sectors, with 10 companies notably hit the most.

In this article, we have identified the 10 worst performers on Tuesday and detailed the reasons behind their drop.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in 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 declined by 9.63 percent on Tuesday to end at $37.9 apiece as investor sentiment for the company was largely influenced by the broader market pessimism that overshadowed fresh company updates.

On Tuesday, SMCI announced its support for the new NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs across its GPU servers and workstation portfolios.

According to the company, more than 100 GPU-optimized systems designed for enterprise AI applications will adopt the server.

“Supermicro leads the industry with its broad portfolio of application-optimized GPU servers that can be deployed in a wide range of enterprise environments with very short lead times,” said SMCI President and CEO Charles Liang. ”Our support for the NVIDIA RTX PRO 6000 Blackwell Server Edition GPU adds yet another dimension of performance and flexibility for customers looking to deploy the latest in accelerated computing capabilities from the data center to the intelligent edge.”

Overall, SMCI ranks 5th on our list of firms heavily hit by market pessimism. 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 as promising as 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.