Super Micro Computer Inc. (NASDAQ:SMCI), a key partner in Nvidia Corp.'s (NASDAQ:NVDA) AI infrastructure ecosystem, saw its market sentiment collapse this week as its Benzinga Edge’s Stock Rankings‘ momentum score plummeted from a robust 72.05 to a bearish 20.83.
Check out SMCI’s stock price here.
What Are Edge Rankings Saying About SMCI?
This precipitous week-on-week drop places the stock in the bottom quintile for relative price strength, signaling intense selling pressure following a disappointing fiscal first-quarter earnings report.
The sharp decline in momentum reflects immediate investor dissatisfaction with the company’s recent financial performance. According to the Benzinga Edge data, Super Micro's price trends have turned negative across all timeframes—short, medium, and long—indicating a sustained downward trajectory over the last year.
However, its quality rankings remain strong. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
SMCI Tanks After Q1 Earnings
While the Momentum metric captures the stock’s struggle with volatility and price weakness, the catalyst lies in the company’s first-quarter FY2026 results.
Super Micro reported revenue of $5.01 billion, missing analyst estimates of $5.99 billion, while gross margins compressed to 9.3% due to the high costs associated with ramping up large-scale liquid-cooled AI clusters.
The stock has fallen by 36.34% over the last month and 21.02% in six months. However, it was higher by 9.25% year-to-date and down 6.39% over the year.
As a strategic partner for Nvidia, Super Micro is preparing to launch next-generation platforms, including the Nvidia Vera Rubin NVL144, in 2026. However, for now, the market is weighing the immediate impact of margin pressures and revenue shortfalls heavily than the company's long-term AI pipeline.
Read Next
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
- No comments yet. Be the first to comment!