Super Micro is tumbling ahead of its third-quarter earnings report later this month

Nvidia Shares fell 10% during trading on Friday, the worst day for the GPU maker since March 2020, when the chipmaker's value was only a twelfth of its current $1.9 trillion market cap.

Nvidia and its competitors didn’t appear to make any announcements on Friday that may have caused share prices to fall. But Super microcomputercertainly one of the businesses that makes Nvidia-based servers saw shares fall 23% on Friday after the corporate said it will report earnings later this month, breaking from its previous pattern of delivering preliminary results.

In recent quarters, including the identical period last 12 months, Super Micro had previously announced strong sales and profits. In January, Super Micro raised its sales and profit guidance 11 days before it announced its second-quarter financial results. Super Micro will report third-quarter results on April 30.

Super Micro Computer, like Nvidia, has seen its sales skyrocket in recent times as a result of insatiable demand for Nvidia-based computers used to develop artificial intelligence programs like ChatGPT.

In addition to Super Micro and Nvidia, which posted the 2 worst performers within the S&P 500 on Friday, investors reduced their holdings of many semiconductor stocks ahead of earnings later this month.

The chip focus VanEck Semiconductor Index fell by 4.5% and poor Shares fell 17% on Friday. Arm sells a style of chip mental property that’s seen as a complement to Nvidia GPU-based AI servers. AMDNvidia's foremost GPU competitor, saw its share price fall 5%.

Shares of Super Micro, which joined the S&P 500 in March, are still up about 151% this 12 months after rising 246% in 2023. The stock's move on Friday was its sharpest decline since August 9, 2023, when it fell 23.4%. Nvidia shares are up over 58% up to now in 2024.

While Super Micro is getting a giant boost from its ties to Nvidia, the market stays fiercely competitive, even with rivals Dell And Hewlett Packard Enterprise plans to construct systems with Nvidia's latest generation of Blackwell graphics processors.