Supermicro Computer (NASDAQ: SMCI) stock plummeted 5.3% on Monday, mirroring the decline of the S&P 500 index, which fell 0.2%, and the Nasdaq Composite index, which dropped 0.8%. The drop in Supermicro’s share price comes as the US government announces new restrictions on exporting artificial intelligence (AI) chips to countries like China, Russia, Iran, and North Korea.
The move aims to bolster America’s competitive edge in the tech sector by limiting AI chip exports. As a leading player in the AI server space, Supermicro relies heavily on Nvidia’s advanced GPUs for its high-performance rack servers. The expanded restrictions could hinder growth for Supermicro and raise concerns about the company’s future prospects.
Supermicro has yet to release its delayed 10-K report, which is expected before February 25. Investors are closely watching this filing to gauge the company’s business performance. However, a recent investigation by the US into Nvidia chips being banned in China may also impact Supermicro’s stock.
The ongoing tensions between the US and China over AI technology could influence Supermicro’s stock performance. Analysts recommend exercising caution and considering alternative investment opportunities due to the regulatory risks and geopolitical uncertainties surrounding the company.
Source: https://finance.yahoo.com/news/why-super-micro-computer-stock-194446900.html