super microcomputer (NASDAQ:SMCI) Stocks are falling in Wednesday trading. The company's stock was down 2.9% as of 3 p.m. ET, according to data from S&P Global Market Intelligence. The otherwise hot artificial intelligence (AI) stock was down as much as 4.6% in early trading of the day.
There's no business-specific news today that lowers Supermicro's stock price, but developments at other high-profile AI companies are hurting the company's valuation. Especially in the surrounding news, Nvidia inventory and sound hound A.I. Today's stock price appears to be fueling a selloff in Supermicro.
Nvidia's plunge is impacting Supermicro stock
No company is more influential than Nvidia when it comes to shaping the reputation movement in the broader artificial intelligence space. The AI leader's fourth-quarter results last week shattered market expectations. The report sent the company's stock price up significantly, and had the effect of pushing up the stock prices of other top AI companies as well. On the heels of explosive profits, investors now appear to be a little less enthusiastic about Nvidia stock.
Yesterday, NVIDIA released a filing with the Securities and Exchange Commission (SEC) revealing that two members of the company's board of directors sold their shares last week. Directors Harvey Jones and Mark Perry sold shares worth $53 million and $11.9 million, respectively, according to public filings.
While the stock sale doesn't necessarily say much about Nvidia's long-term performance prospects, it comes at a time when investors may be wondering what the stock's next major short-term performance driver will be. Masu. Nvidia stock was down about 0.6% as of 3 p.m. ET and had fallen about 2% earlier in the day. The stock market decline has dampened enthusiasm for supermicrocomputers and other high-profile AI stocks.
Analyst coverage of SoundHound AI focuses on Supermicro
Following Nvidia and Supermicro's explosive profits, SoundHound AI has recently emerged as the market's newest hot artificial intelligence stock. The company's stock price has soared 247% in the last month, but recent reporting from Northland analysts suggests it may be time to put some brakes on the stock.
Northland's lead analyst for the company lowered his rating on the stock from “outperform” to “market perform” in a note released today. SoundHound AI stock was down 6.3% as of 3pm ET, having fallen as much as 14% earlier in the day, with the bearish momentum having a mild spillover effect on Supermicro stock.
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Keith Noonan has no position in any stocks mentioned. The Motley Fool has a position in and recommends Nvidia. The Motley Fool recommends Super Micro Computers. The Motley Fool has a disclosure policy.
Why Nvidia and SoundHound are driving super microcomputer stock prices down AI News Today was originally published by The Motley Fool
