Super Micro gaps lower, proceeds to erase double-digit loss

AI server company Super Micro Computer opened nearly 10% lower, but has since proceeded to erase all of those losses less than an hour into trading.

There was no shortage of potentially negative catalysts to point to to explain the drop:

• Momentum: At one point in February, shares had doubled, and pretty much every high-flying company has reversed course recently in the wake of Walmart’s sluggish 2025 guidance.

• Sell the news: Earlier this week, Super Micro finally filed the necessary paperwork to avoid being delisted from the Nasdaq. That removes an overhang for the stock, but also, after any short-covering tied to that has run its course, removes a source of buying power.

• Read-through from peers: Dell, a fellow server company, reported lower-than-expected fourth-quarter revenues after the close on Thursday. This may somewhat temper optimism on Super Micro’s ambitious growth forecast.

The recovery in early trading comes amid volumes that are roughly in line with the stock’s one-month average and options activity that, if anything, is skewed a little more negative than usual.