Super Micro Computer (SMCI +6.42%) stock is getting hit with big sell-offs in Tuesday's trading. The server specialist's share price was down 7.6% as of 1:30 p.m. ET. At the same point in time, the S&P 500 index had pulled back by 0.3% and the Nasdaq Composite index was down 1.1%. Supermicro stock had been off as much as 13.4% earlier in the session.
NASDAQ: SMCI
Key Data Points
The server company's valuation is heading lower amid intensifying tariff concerns, other macroeconomic fears, and investor nervousness ahead of Nvidia's big fourth-quarter report due out Wednesday afternoon. And Supermicro will itself be filing several periods' results with the Securities and Exchange Commission (SEC) on Tuesday.
A bearish mood around AI stocks
The market has pulled back significantly in the past week or so, and growth-dependent AI stocks have experienced particularly large sell-offs. Recent inflation data has come in hotter than expected, and investors and economists are anticipating potential adverse economic impacts from President Trump's new tariffs. Recent reports also suggest that Trump plans to increase restrictions on sales of advanced semiconductors and manufacturing equipment to China. Adding another bearish catalyst, some investors are worried that Nvidia will deliver weaker-than-expected Q4 numbers and guidance Wednesday.
Investors sell ahead of Supermicro's 10-K filing deadline
Supermicro has until the end of Tuesday to submit its delayed 10-K filing for its fiscal 2024 (which ended in June) to the SEC in order to remain in compliance with Nasdaq rules and continue trading on the exchange. The company is also scheduled to submit filings for the first two quarters of its current fiscal year. It is, in short, a big moment for the stock.
The company's valuation has been under pressure due to concerns about its accounting practices and its recent lack of audited financial results. If the filings to the SEC don't reveal any material downward revisions from the results that the company has already published, the stock could soar. But if Supermicro doesn't make the filing deadline or if it revises previously published numbers downward, the stock is set for a bumpy ride.
