Nvidia Stock Drops 3.88% Amid Supermicro's Revenue Miss

On April 30, 2025, Nvidia's stock dropped by 3.88% in pre-market trading.

Supermicro, a company closely tied to Nvidia, recently reported disappointing financial results, which significantly impacted its stock price. The company's third-quarter revenue was between $4.5 billion and $4.6 billion, far below the analyst's expectation of $5.5 billion. This financial setback has raised concerns about the demand for AI and data center services, which are key markets for Nvidia.

Supermicro's CEO, Liang Jianhou, has stated that the company aims to achieve $40 billion in revenue for the 2026 fiscal year. However, this target still falls short of analyst expectations. The company's struggles have also affected its competitors, including Dell and HP Enterprise, which saw their stock prices drop by 5% and 2%, respectively, following Supermicro's financial report.

Additionally, the U.S. government's recent ban on exporting Nvidia's H20 chips to China has added to the company's challenges. This ban has resulted in a $5.5 billion loss for Nvidia and has raised concerns about the future of the AI chip market. The ban has also highlighted the growing tensions between the U.S. and China in the tech industry, with both countries vying for dominance in the AI and semiconductor sectors.