Why Super Micro Computer Stock Is Sinking Today

Super Micro Computer (NASDAQ: SMCI) stock is seeing a significant pullback in Monday's trading. The server specialist's share price was down 3.8% as of 12:45 p.m. ET. At the same point in the day's trading, the S&P 500 was up 0.2% and the Nasdaq Composite was down 0.3%. The stock had been down as much as 10.4% earlier in trading.

Supermicro stock is seeing a pullback in conjunction with bearish momentum for artificial intelligence (AI) stocks -- as investors appear to be feeling a bit jumpy ahead of Nvidia's earnings on Wednesday. Investors are also likely feeling the jitters due to a major update from Supermicro that's slated for tomorrow.

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Supermicro stock slips as the market awaits Nvidia's Q4 report

Tech stocks are continuing a slide that started late in last week's trading as investors weigh macroeconomic risks and the significance of Nvidia's upcoming fourth-quarter report. The AI leader's performance in the period and forward guidance could trigger big movement for the stock market at large.

Nvidia is the key bellwether for momentum in the AI space, and the stakes are high on the heels of the big volatility kicked off by the DeepSeek R-1 model in January. Supermicro also uses Nvidia's advanced graphics processing units (GPUs) as the foundational hardware in its rack servers, and its stock will likely make a move depending on the print in the AI hardware leader's Q4 report.

Massive news for Supermicro is on the horizon

Even with today's pullback, Supermicro stock is still up 76.5% across 2025's trading -- and investors are moving to take profits ahead of a huge moment for the company. The tech specialist is scheduled to submit its delayed 10-K filing to the Securities and Exchange Commission (SEC) by tomorrow -- and it could be a make or break event for the stock.

Despite its recent rally, Supermicro's share price is down roughly 55% from the high it reached last year. The pullback largely stems from allegations of bad accounting practices and the company's delayed filing of its annual report for its 2024 fiscal year, which ended June 30. The company has also yet to submit audited filings for the first two quarters of its current fiscal year.

But the delayed reports are now almost here, and it could mark this year's biggest moment for Supermicro stock. For better or worse, shares look poised for big moves this week.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.