Semiconductors Steal the Show

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Needless to say, the Super Micro story bushwhacked the bulls and kneecapped NVDA, despite the firm reporting higher-than-expected revenue for the second quarter, but I did send out an update. I questioned everything — including selling the NVDA news. 

The reason I mention the story of Super Micro Computer delaying its filing with the SEC is because yesterday’s OP was about my experiences on the trading floors during the 2000 tech bubble (but I wrote that before I knew the SMCI story was out). 

I pointed out the total market capitalization of the Dot-com crash was $47 billion… versus Nvidia’s current market cap of $3.1 trillion. But the new comparison is Super Micro’s market cap, which was ~$35 billion before the news broke. That’s only a $12 billion difference vs. the Dot-com market cap. 

Where am I going with this? Well, I think if the big $1T to $3T tech firms all stumbled, there would be a major problem. Just look at what happened to SMCI. The stock fell 26% in early trading Wednesday, putting shares at $405. Shares have fallen 54% in the last 3 months, but are still up almost 43% since the start of the year and the market cap has fallen from $35 billion to $26 billion. 

What if two or three of the Mag 7 started to roll over. Or worse, all seven?