Super Micro Computer Inc. (NASDAQ: SMCI) experienced a decline in its stock price during Wednesday’s trading session. As of 3 p.m. ET, the company’s share price had dropped by 2.9%, according to data from S&P Global Market Intelligence. Despite being part of the otherwise thriving artificial intelligence (AI) sector, Super Micro Computer’s stock had previously fallen by as much as 4.6% earlier in the trading day.
While there is no specific news related to Super Micro Computer driving this decline, it seems that the company’s valuation is being influenced by developments affecting other prominent AI companies. In particular, news regarding Nvidia and SoundHound AI stocks appears to have contributed to the sell-off of Super Micro Computer’s stock today.
Nvidia’s dip is impacting Supermicro stock
In the broader artificial intelligence sector, Nvidia holds significant influence over valuation movements. After posting fourth-quarter results that exceeded market expectations, Nvidia’s stock experienced significant gains, which also had a positive impact on other top AI companies.
However, recent stock sales by two members of Nvidia’s board of directors, Harvey Jones and Mark Perry, totaling $53 million and $11.9 million, respectively, as disclosed in filings with the Securities and Exchange Commission (SEC), have led to some cooling off of investor enthusiasm for Nvidia’s stock.
While these sales may not necessarily reflect on Nvidia’s long-term performance outlook, they coincide with a period where investors are anticipating the next major near-term catalyst for the stock.
As of 3 p.m. ET, Nvidia’s share price was down approximately 0.6%, with earlier declines of around 2%, contributing to a broader sell-off affecting Super Micro Computer and other prominent AI companies.
Analyst coverage on SoundHound AI weighs on Supermicro
Following significant gains for Nvidia and Super Micro Computer, SoundHound AI has emerged as a new hot stock in the artificial intelligence market. Over the last month, the company’s share price has surged by 247%. However, recent analysis from a Northland analyst suggests that it may be time to exercise caution.
In a note issued today, Northland’s lead analyst downgraded the stock rating from “outperform” to “market perform.” Consequently, SoundHound AI stock experienced a decline of 6.3% as of 3 p.m. ET, with earlier drops reaching as much as 14% during the day. This bearish sentiment is also impacting Super Micro Computer stock to a lesser extent.