Super Micro Computer (SMCI), once of the biggest market winners in 2024, has round-tripped a huge advance and has become the S&P 500’s biggest loser this year.
The AI server maker crashed nearly 33% Wednesday after auditor Ernst & Young resigned, citing a lack of confidence in the board’s integrity. Super Micro stock kept falling, plunging 44.9% for the week.
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In a late Friday SEC filing, Super Micro reached a deal to extend the deadline for filing audited financial statements for its June-ended fiscal year from Oct. 31 to Dec. 31. It also pushed back the deadline for the September-quarter balance and income statement to Dec. 31 from Nov. 29.
The Nvidia (NVDA) partner, once of the biggest market winners in 2024, is now down 8.4% as of Nov. 1.
While there are many S&P 500 components that are down far more this year the Super Micro, SMCI stock is the biggest loser for the benchmark index.
Super Micro Joined S&P 500 Near The Top
That’s because Super Micro joined the S&P 500 before the open on March 18, just after the AI server maker hit record highs, capping a massive 295% run that start Jan. 19. SMCI stock seemed to stage an abbreviated climax top on Feb. 16, but then pushed to new highs on word that it would join the S&P 500.
However, since joining the S&P 500 with a 100.07 price, the trend has been relentlessly lower, especially since mid-July. Growing concerns about Super Micro’s accounting, including a short-seller report and reported Justice Department probe in the weeks before the auditor exit triggered Wednesday’s 33% crash to a nine-month low.
At Friday’s close of 26.05, Super Micro stock is down 75.6% since joining the S&P 500. That’s the biggest negative for the index, exceeding Walgreens Boots Alliance (WBA), down 63.8% so far this year.
Meanwhile, Nvidia stock is up 173.35% as of Nov. 1, the S&P 500’s second-best performer.
Late Friday, S&P Dow Jones Indices announced that Nvidia will replace rival chipmaker Intel (INTC) in the Dow Jones Industrial Average, a long-speculated move. Nvidia stock rose modestly Friday night.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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