- Supermicrocomputer stock plunged 23% on Friday after the company announced its third-quarter earnings date.
- Wall Street seemed disappointed that Super Microcomputer did not pre-announce its results as it did last year.
- The plunge has weighed on AI darling Nvidia, which is down about 10%.
Supermicrocomputer stocks tumbled as much as 23% on Friday as investors worried about the strength of upcoming earnings reports.
Super Microcomputer announced that it would announce its third quarter financial results on April 30th, but did not make an advance announcement like it did for its second quarter financial results in January.
Companies often announce earnings in advance if the results significantly beat Wall Street's consensus expectations.
Super Micro Computer's failure to pre-announce earnings has led Wall Street to believe that the company's upcoming earnings report won't be as strong as last quarter and could end up missing analysts' expectations. Concerns arose.
Wells Fargo Securities wrote Friday that the super micro computer did not provide Wall Street with “positive advance announcements that were considered negative,” according to Bloomberg.
The company has experienced extraordinary growth over the past year as demand for AI-powered servers soared. The stock has soared more than 1,000% in one year, and was quickly added to the S&P 500 index from the small-cap Russell 2000 index earlier this year.
Since Nvidia chips power Super Micro Computer's server solutions, investors are likely speculating on Nvidia's potential weaknesses in Super Micro Computer's upcoming earnings report.
Nvidia's stock price fell by as much as 10%, and its market capitalization fell by $183 billion.