<div id="readability-page-1">BETA This is a BETA experience. opt-out here Money Markets Why Is SMCI Stock Falling?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 16, 2025, 02:07pm EST  CHONGQING, CHINA - JULY 31: In this photo illustration, a person holds a smartphone displaying the logo of Super Micro Computer Inc. (NASDAQ: SMCI) (Photo illustration by Cheng Xin/Getty Images) Getty Images Super Micro Computer (SMCI) stock reached the fifth day of a streak characterized by losses, accumulating a total return of -11% during this timeframe. The company has seen a decline of approximately $3.6 billion in value over the past five days, resulting in a current market capitalization of about $19 billion. The stock is presently 2.9% higher than its value at the conclusion of 2024. This is in comparison to the year-to-date returns of 15.9% for the S&amp;P 500.  Recently, Super Micro Computer went through a significant drop as investors reacted to Q1 earnings that fell short of projections ($0.35 EPS compared to $0.46 expected), amidst increased competition and decreasing gross margins (9.5%). Concerns regarding negative free cash flow contributed to skepticism surrounding sustainable profitability, despite optimistic growth projections for AI infrastructure.  strong Prolonged weakness can indicate more than mere fluctuations. Such trends often reflect shifts in sentiment or deeper issues. A consecutive losing streak could signal potential further declines, or it may also present a buying opportunity if the underlying fundamentals remain strong. strong: There strong SMCI stock based on its overall Moderate operational performance and financial condition. This aligns with the stock's Moderate valuation, leading us to believe it is Fairly Priced (see Buy or Sell SMCI ).  For a brief overview, SMCI delivers high-performance modular server and storage solutions, which include servers, blades, racks, and networking devices for enterprise data centers, cloud computing, AI, 5G, and edge computing markets.  Comparing SMCI Stock Returns With The S&amp;P 500  The subsequent table outlines the returns for SMCI stock against the S&amp;P 500 index over various timeframes, including the ongoing streak:  MORE FOR YOU metrics1 Trefis Analyze historical trends to understand whether past declines like this represented buying opportunities or pitfalls: SMCI Dip Buyer Analysis .  Gains and Losses Streaks: S&amp;P 500 Constituents  At present, there are 105 S&amp;P constituents that have recorded 3 or more consecutive days of gains, alongside 41 constituents that have noted 3 or more consecutive days of losses.  metrics2 Trefis strong Super Micro Computer (SMCI)  Last 2 Fiscal Years:  metrics3 Trefis Last 2 Fiscal Quarters:  metrics4 Trefis The current losing streak of SMCI stock does not instill much confidence in investors. In contrast, Trefis High Quality (HQ) Portfolio , comprising 30 stocks, has demonstrated a history of consistently outperforming its benchmark, including all three — the S&amp;P 500, S&amp;P mid-cap, and Russell 2000 indices. What accounts for this? As a collective, HQ Portfolio stocks have delivered superior returns with lower risk compared to the benchmark index; providing a less volatile investment experience, as reflected in HQ Portfolio performance metrics .  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

SMCI

<p>Super Micro Computer (SMCI) stock has fallen for five consecutive days, losing 11% in value. The decline is due to Q1 earnings missing projections, increased competition, and decreasing gross margins. Despite optimistic growth projections for AI infrastructure, concerns about negative free cash flow have led to skepticism about sustainable profitability. The stock's moderate operational performance and financial condition suggest it is fairly priced, but the losing streak raises investor concerns.</p>

- Super Micro Computer (SMCI) stock has experienced a five-day losing streak, falling 11% and losing approximately $3.6 billion in market value to a capitalization of about $19 billion.  
- The decline followed disappointing Q1 earnings of $0.35 EPS versus the expected $0.46, coupled with increased competition and negative cash flow concerns, despite positive outlooks for AI infrastructure.  
- This ongoing weakness indicates potential issues affecting investor sentiment and may suggest either further declines or a buying opportunity if fundamentals remain strong.