Semiconductor Stocks Tumble: Super Micro and AMD Lead Industry-Wide Sell-Off

Semiconductor Stocks Tumble as Super Micro and AMD Lead Sell-Off

The semiconductor market experienced a significant downturn today, with the Philadelphia Stock Exchange Semiconductor Index falling by 3%. The decline was primarily driven by steep drops in shares of Super Micro Computer and Advanced Micro Devices (AMD), sending ripples through the broader chipmaking sector.

Super Micro Computer’s stock plummeted by up to 34% following the resignation of its auditor, Ernst & Young. The accounting firm cited an inability to rely on management’s representations as the reason for its departure. This development comes amid an ongoing investigation by the Department of Justice into Super Micro’s practices. Adding to the company’s woes, a recent report by Hindenburg Research criticized Super Micro’s internal accounting controls, further eroding investor confidence.

Meanwhile, AMD saw its stock price fall more than 10% after releasing disappointing fourth-quarter revenue guidance. CEO Lisa Su acknowledged the tight market environment but expressed optimism for significant growth in 2025. The company’s outlook has raised concerns about the near-term prospects of the semiconductor industry.

The weakness in Super Micro and AMD had a cascading effect on other major players in the chipmaking sector. Industry giants Nvidia, Broadcom, and Intel all experienced declines of up to 2%, reflecting broader concerns about the state of the semiconductor market.

This sell-off underscores the challenges facing the semiconductor industry, including supply chain issues, geopolitical tensions, and fluctuating demand. As investors digest these developments, the sector’s volatility is likely to remain a key focus in the coming weeks.