Key Highlights

  • Super Micro Computer (NASDAQ:SMCI) fell about 4% to around USD 27.4 on Tuesday, November 10, 2026, as a second day of losses at Nvidia dragged AI server makers lower.
  • Dell fell about 6% and Hewlett Packard Enterprise about 2% the same day, as investors reassessed exposure to the dominant AI chip supplier.
  • The shares fell again after hours on Wednesday, November 11, when reports that Nvidia's board was preparing to remove its chief executive sent Nvidia down 8% to 9% in extended trading.
  • Super Micro trades at a trailing Earnings multiple of about 8 times and has set a fiscal 2027 Revenue target of USD 72 billion to USD 82 billion.

Why the Stock Fell

Super Micro's Business depends on Nvidia's GPUs, which go into most of the AI servers it builds, so any disruption at the chipmaker is felt directly. On Monday and Tuesday, Nvidia fell sharply after its board opened an investigation into its chief executive's reported relationship with an alleged foreign intelligence asset, and Nvidia closed down about 5.5% on Tuesday. AI server makers followed. Super Micro Computer (NASDAQ:SMCI) lost about 4% to roughly USD 27.4, while Dell fell about 6%. The broader market also weakened as a hot October CPI report pushed yields higher. On Wednesday, chip stocks rebounded strongly and Nvidia rose nearly 3% in regular trading, but after the close a report that the board was preparing to oust the chief executive pushed Nvidia down 8% to 9%, and Super Micro fell again in extended trading. The decline was driven by sentiment around its main supplier rather than company-specific news.

The Fundamental Picture

Super Micro's operating results have been strong in absolute terms. The company reported Net Income of about USD 1.18 billion for the fiscal fourth quarter, released in August, and has guided to fiscal 2027 revenue of USD 72 billion to USD 82 billion. Yet the shares are down about 6% for the year and trade at roughly 8 times trailing earnings, the lowest multiple among major server makers. That discount reflects concerns about customer concentration, with one customer accounting for 44% of quarterly revenue, thin margins and heavy Working Capital needs as the company builds inventory for large AI deployments. The management team has described the concentration as a consequence of the scale at which AI infrastructure is being built. Investors in Super Micro Computer (NASDAQ:SMCI) therefore tend to react sharply to any news that might delay large GPU orders.

What to Watch

The key near-term Factor is the outcome at Nvidia. A swift and orderly Leadership transition, or a clear statement from the board, would likely ease pressure on the server group, while prolonged uncertainty could weigh on orders and sentiment ahead of Nvidia's November 17 earnings report. Investors should also watch delivery schedules for Nvidia's latest platforms, which drive Super Micro's revenue timing, and any update on cash conversion and inventory levels. Competitors Dell and Hewlett Packard Enterprise report quarterly results in the coming weeks, which will provide a read on AI server demand. For Super Micro Computer (NASDAQ:SMCI), a low valuation offers some cushion, but the stock is likely to continue trading as a high-beta proxy for Nvidia until the leadership question is resolved.

Where Things Stand

Super Micro Computer (NASDAQ:SMCI) fell about 4% on November 10, 2026 and again after hours on November 11 as turmoil around Nvidia's chief executive weighed on AI server stocks. The company trades at about 8 times trailing earnings with a fiscal 2027 revenue target of USD 72 billion to USD 82 billion. Nvidia's leadership outcome and November 17 earnings are the next catalysts.