Super Micro’s plummet leads several other AI hardware stocks down as well

While Super Micro Computer (NASDAQ:SMCI) led Wednesday’s free fall, several other companies integral to the artificial intelligence hardware market slipped as well.

Super Micro plummeted 25% by noon trading, following news the company will delay its annual 10-K report to the U.S. Securities and Exchange Commission. This came one day after Hindenburg Research issued a harsh indictment on the overall state of the server company.

Barclays analysts discussed the issue with Super Micro management this morning.

“Management believes that the fundamental business remains strong and that they just need more time to assess internal controls and governance,” said Barclays analysts George Wang and Tim Long, in an investor note. “Management says SMCI is fully in compliance with export controls.”

Still, Barclays believes it might take several months or longer before Super Micro can regain investors’ trust.

“It is likely a show-me story for margin trends as investors want more proof points of margin improvement,” Wang said. “While component constraints and expedite fees should largely get alleviated by Dec-Q, competitive pricing trends should take a bit longer to normalize in our view as we think SMCI has been giving away DLC racks for free (priced as air-cooled racks) to win large orders with Musk entities.”

Several other big name AI stocks slid Wednesday as well. Arm Holdings (NASDAQ:ARM) was down 6%. Arm has dropped about 33% this summer after hitting an all-time high of $186 in early July. Arm has only been publicly traded since last September.

Other AI names falling on Wednesday included Micron Technology (NASDAQ:MU) -4.5%, Advanced Micro Devices (NASDAQ:AMD) -3%, Nvidia (NVDA) -2.5%, Intel (INTC) -2%, Broadcom (AVGO) -1.8%, Qualcomm (QCOM) -1.6% and Taiwan Semiconductor Manufacturing (TSM) -1.5%.