Super Micro Computer (SMCI 7.12%) stock is pulling back in Wednesday's trading. The company's share price was down 2.9% as of 3 p.m. ET, according to data from S&P Global Market Intelligence. The otherwise red-hot artificial intelligence (AI) stock had been down as much as 4.6% earlier in the day's trading.
While there isn't any business-specific news driving Supermicro's stock lower today, the company's valuation is dipping due to developments for other high-profile AI companies. In particular, news surrounding Nvidia stock and SoundHound AI stock appears to be driving sell-offs for Supermicro today.
Nvidia's dip is impacting Supermicro stock
When it comes to shaping valuation moves in the broader artificial intelligence space, no company is more influential than Nvidia. The AI leader posted fourth-quarter results last week that crushed the market's expectations; the report powered big gains for its own stock and also had the effect of boosting share prices for other top AI players. On the heels of explosive gains, investors now appear to be cooling on Nvidia stock a bit.
Yesterday, Nvidia published filings with the Securities and Exchange Commission (SEC) revealing that two members of the company's board of directors had sold shares last week. Per the public filings, board members Harvey Jones and Mark Perry sold shares worth $53 million and $11.9 million, respectively.
While the stock sales don't necessarily say much about Nvidia's long-term performance outlook, they arrive at a time when investors may be wondering what the next major near-term performance catalyst for the stock will be. Nvidia's share price was down roughly 0.6% as of 3 p.m. ET and had been down roughly 2% earlier in the day. The sell-off dampened enthusiasm for Super Micro Computer and other high-profile AI names.
Analyst coverage on SoundHound AI weighs on Supermicro
Following explosive gains for Nvidia and Supermicro, SoundHound AI has recently emerged as the market's latest red-hot artificial intelligence stock. The company's share price has rocketed 247% higher over the last month, but recent coverage from a Northland analyst suggested that it may be time to pump the brakes a bit.
In a note released today, Northland's lead analyst on the company downgraded his rating on the stock from "outperform" to "market perform." SoundHound AI stock was down 6.3% as of 3 p.m. ET and had been down as much as 14% earlier in the day, and the bearish momentum is having some mild spillover effects for Supermicro stock.
