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Super Micro Computer falls 6% as AI-hardware sentiment weakens and margin concerns linger
Super Micro Computer (SMCI) stock dropped 6.0% due to weakening sentiment in the AI-hardware sector and ongoing investor concerns about compressed gross margins. Despite strong recent revenue, profit-taking is occurring as the market shifts focus from revenue growth to profitability and execution risks. This decline is part of a broader risk-off movement affecting AI-linked hardware stocks.