Nvidia witnessed a 10% decline in its shares on Friday, marking its bleakest performance since March 2020, a time when the company's valuation was a fraction of its current $1.9 trillion market capitalization.
The stock's plummet wasn't linked to any specific Nvidia-related news. However,
Super Micro Computer, a supplier constructing servers based on Nvidia components, experienced a 23% drop in shares on Friday after deviating from its recent trend of issuing preliminary results. Instead, the company announced it would disclose earnings later this month.
In January, Super Micro revised its sales and earnings projections 11 days prior to revealing second-quarter financials. The company is set to report fiscal third-quarter results on April 30.
Both Super Micro and Nvidia emerged as the poorest performers in the S&P 500 on Friday. Super Micro
joined the index in March.
Similar to Nvidia, Super Micro has observed a surge in sales lately, driven by the relentless demand for Nvidia-powered computers utilized in developing artificial intelligence applications such as ChatGPT.
Alongside these developments, investors trimmed their positions in numerous semiconductor stocks ahead of upcoming earnings releases.
The
VanEck Semiconductor Index, focusing on chip-related firms, experienced a 4.5% decline, while
Arm, a provider of chip intellectual property complementing Nvidia's graphics processor-based AI servers, saw its shares plunge by 17% on Friday.
AMD, Nvidia's primary competitor in GPU technology, also witnessed a 5% drop in its shares.
Super Micro's shares have still managed to climb approximately 151% year-to-date, following a remarkable 246% surge in 2023. Friday's downturn marked its most significant decline since August 9, 2023, when it dropped by 23.4%. Meanwhile, Nvidia's shares have surged by over 58% so far in 2024.
