Super Micro Computer

SMCI

Market cap $20.2B

Lithium miner Albemarle came out on top, while Super Micro Computer led the list of worst performers.

As the AI trade fizzles, major technology stocks have seen month-to-date declines of as much as 37%.

Super Micro Computer targets $36B in FY26 revenues despite a quarterly dip, betting on AI demand and its modular data center strategy to drive growth.

Super Micro Computer Inc. (NASDAQ: SMCI), a key partner in Nvidia Corp.'s (NASDAQ: NVDA) AI infrastructure ecosystem, saw its market sentiment collapse this week as its Benzinga Edge's Stock Rankings‘ momentum score plummeted from a robust 72.05 to a bearish 20.83.

Super Micro Computer has experienced significant volatility recently, dropping from $60 to near $30, a key support level. In addition to being just above a strong support level of $30, SMCI is also massively oversold. Despite a notable FY2026 revenue guidance boost, the stock's recent price movement leaves it massively undervalued, with its P/S ratio near crisis levels.

Major stocks show continued strength in early Wednesday trade, with Tesla, Palantir, and Super Micro Computer all displaying bullish setups. Key support levels remain firm as markets head into thin holiday conditions around Thanksgiving.

On a day when the tech sector is doing its best to prop up market sentiment, some of its biggest names are lagging behind.

Last month, when concerns about an AI bubble spilled over and sparked a sell-off, stocks spent several weeks in a pullback. However, the fallout adversely affected some equities more than others—even those that have no direct ties to the AI industry.

Super Micro Computer (SMCI) shares are down 31.0% over the last 21 trading days. This recent decline highlights worries regarding intensified competition in the AI server market and shrinking margins following an earnings miss.

Super Micro Computer (SMCI) is upgraded to Buy due to its extremely attractive 0.5x FY26 revenue multiple, despite ongoing margin pressures. SMCI faces volatile gross margins, intense competition from OEMs and ODMs, and management's inconsistent guidance, leading to market skepticism. Despite projected 65% FY26 revenue growth, SMCI's gross margin-adjusted revenue growth is estimated at only 11%, reflecting industry-wide margin compression.