Super Micro Computer (SMCI) stock fell anew on Monday after the Nasdaq stock exchange dropped the AI data center specialist from its Nasdaq 100 index. SMCI stock sank below a key support level on the news.
Late Friday, Nasdaq announced that it is replacing the company, better known as Supermicro, on its flagship index before the open on Dec. 23. SMCI stock joined the index on July 22.
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In morning trades on the stock market today, SMCI stock fell more than 6% to 33.92. With the decline, it dropped beneath its 50-day moving average line, a technical support level, according to IBD MarketSurge charts.
Year to date, SMCI stock is up 20%. But it’s a far cry from its split-adjusted all-time high of 122.90, reached on March 8.
Supermicro has been dogged by accounting and financial reporting issues. It has yet to file its reports for the fiscal year ended June 30 and the quarter ended Sept. 30 with the U.S. Securities and Exchange Commission.
In positive news for the San Jose, Calif.-based company, its customers appear to be sticking with Supermicro amid its struggles. JPMorgan reported last week that data center operators are keeping their orders in place at the server maker.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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