Super Micro Computer Inc. (SMCI) stock fell more than 7% Monday as a broader semiconductor and AI infrastructure selloff pressured technology stocks. The Nasdaq fell 1.59%, while the S&P 500 declined 0.68%.
Super Micro's decline came alongside sharp losses across AI-linked chip stocks. Broadcom Inc. (AVGO), Advanced Micro Devices Inc. (AMD), NVIDIA Corp. (NVDA), Intel Corp. (INTC) and Marvell Technology Inc. (MRVL) fell between 3% and 8%.
The sector weakened as investors reassessed the outlook for AI infrastructure spending amid calls to slow frontier AI development over safety concerns.
The Financial Times reported that a slower pace of AI development could eventually weigh on infrastructure and capital spending.
That debate is particularly relevant for Super Micro. The company supplies servers and rack-scale systems used in AI data centers. Any slowdown in AI capital spending could therefore affect demand for its infrastructure.
Anthropic CEO Dario Amodei has called for greater coordination among AI companies on frontier development and safety. The debate has raised questions about the pace of future AI investment.
Technical Analysis
Despite Monday's decline, Super Micro remains in a longer-term bullish trend. The stock trades 13.3% above its 50-day simple moving average of $32.72 and 17.7% above its 200-day SMA of $31.51.
The 50-day SMA also remains above the 200-day SMA following an August golden cross.
However, shares have slipped 1.8% below their 20-day SMA of $37.74, signaling weaker near-term momentum.
The relative strength index stands at 52.17. That indicates neutral momentum after the stock retreated from overbought levels in August.
Support sits near $35.50, while resistance is around $39.50.
Analyst Outlook
The stock has a Hold consensus rating and an average price forecast of $36.20.
Citigroup raised its price forecast to $39 while maintaining a Neutral rating on Aug. 12. Goldman Sachs maintained a Sell rating and raised its forecast to $34. Mizuho maintained Neutral and lifted its forecast to $35.
MarketDash Edge Rankings
Super Micro has a Momentum score of 77.51, Quality score of 94.53, Value score of 88.16 and Growth score of 99.22, according to MarketDash Edge Rankings.
The scores point to strong growth and quality metrics despite the latest selloff.
SMCI Price Action
Super Micro shares fell 7.53% to $37.08 at the time of publication Monday, according to market data.
