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 Thursday, down 12%.
↑
X
Nasdaq Hits New High Again; Reddit, Alphabet, Eateries In Focus
The Nvidia (NVDA) partner, once of the biggest market winners in 2024, is up just 2.4% as of Oct. 31.
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 Thursday’s close of 29.11, Super Micro stock was down 72.8% 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 168.1% as of Oct. 31, the S&P 500’s second-best performer.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Catch The Next Big Winning Stock With MarketSurge
Best Growth Stocks To Buy And Watch
How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets
Election 2024: What Trump Vs. Harris Outcomes Mean For Stocks, Federal Reserve
