Super Micro's stock price drops as investors sell off their holdings in the company before its upcoming earnings report.

• Super Micro Computer shares plunged 18% on Friday.
• The company's shares have increased by more than 245% in 2023 and are still up over 160% this year.
• Super Micro did not release preliminary results along with the date for its quarterly earnings report.

On Friday, the shares of one of the market's hottest stocks experienced a 18% decline as investors reduced their holdings in anticipation of upcoming earnings.

Despite joining the S&P 500 in March, Super Micro's shares have increased by approximately 168% this year, following a 246% increase in 2023. As a major supplier of server and computer infrastructure, Super Micro is a key provider of the technology that powers many of today's advanced artificial intelligence models.

Super Micro announced that it will report its fiscal third-quarter results on April 30, breaking from its previous practice of providing preliminary results. In January, the company increased its sales and earnings guidance 11 days before announcing its second-quarter financials.

Since February 16th, the stock has been declining at its fastest rate, with a drop of approximately 20%.

Nvidia's latest generation of Blackwell graphics processing units is also being used by competitors such as and to build systems, despite Super Micro receiving a significant boost from its partnership with Nvidia.

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