Super Micro Computer Plummeted Today -- Is It Time to Buy the Artificial Intelligence (AI) Stock?

Super Micro Computer (NASDAQ: SMCI) stock got hit hard with sell-offs in Monday's trading. The server specialist's share price ended the day down 12.5% amid a 1.8% decline for the S&P 500 index and a 3.5% decline for the Nasdaq Composite index.Supermicro sank today as investors considered risk factors related to the new R1 artificial intelligence (AI) model from DeepSeek -- a Chinese AI start-up. The software was launched last week and is making waves in the tech world due to performance that matches or beats OpenAI's latest ChatGPT in some respects. Even more striking, the software was reportedly trained using hardware that's less advanced than what most leading U.S. tech companies are using and at a far lower cost.Nvidia's advanced graphics processing units (GPUs) are the key hardware component in Supermicro's high-performance rack servers for AI, and investors are reacting to the possibility that DeepSeek's R1 will usher in an era in which AI systems are less reliant on super powerful hardware. With today's pullback, Supermicro's share price is now down 75.5% from the high it hit last year. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool