We recently compiled a list of the The 10 Worst-Performing Stocks on Monday. In this article, we are going to take a look at where Super Micro Computer Inc. (NASDAQ:SMCI) stands against the other stocks.
Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.
The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.
On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.
Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.
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Super Micro Computer Inc. (NASDAQ:SMCI)
Information Technology company Super Micro Computer Inc. (NASDAQ:SMCI) dropped its share prices by 5.86 percent on Monday to finish at $26.85 apiece as investors sold off positions before the release of the company’s earnings performance after the market closed on the same day.
According to Nasdaq, Wall Street analysts were expecting Super Micro Computer to book a staggering 48 percent in earnings growth, as well as revenues of $6 billion and earnings per share of 66 cents apiece.
Operating at the forefront of AI and high-performance computing, Super Micro is strategically positioned to capitalize on emerging opportunities in a market that is rapidly gaining momentum.
Just recently, the company resolved concerns over alleged misconduct in its accounting practices, confirming that an investigation found no evidence of wrongdoing. However, it announced plans to replace its Chief Financial Officer as a precautionary measure.
Overall SMCI ranks 10th on our list list of the worst performing stocks on Monday. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
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