Super Micro Falls 4% as NVIDIA’s Slide Drags AI Server Stocks; Dell Drops 6%, Hewlett Packard Enterprise Declines 2%
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AI server makers are falling again as turmoil at their most important chip supplier spills across the hardware group. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is at $27.39, down 4% in afternoon trading. The company builds its rack-scale systems around graphics processing units (GPUs) from NVIDIA (NASDAQ:NVDA), so trouble at the chipmaker tends to land quickly on the server builder.
NVIDIA stock is at $167.51, down 6%. On a longer view, Super Micro stock is down 6% year to date (YTD), even though the company reported net income of $1.178 billion for Q4 FY2026 on August 11. That gap between profits and price is one reason the valuation picture across the AI server group looks more mixed than it first appears.
NVIDIA’s Board Investigation Rattles the AI Server Trade
NVIDIA is falling for a second straight day as investors weigh reports that its board is investigating CEO Jensen Huang’s relationship with an alleged Chinese spy, according to CNBC. On November 9, NVIDIA stock fell even as the broader market rose. China has rejected the spying allegations as “slander and smearing,” per CNBC’s reporting from Beijing.
CNBC also noted that Huang is seen as having tremendous influence with President Trump, including on the approval of NVIDIA’s H200 chip. Hardware makers such as Super Micro Computer depend on steady NVIDIA supply and customer confidence, so uncertainty at the top of that chain tends to spread. Adding to the pressure, October’s Consumer Price Index (CPI) came in hotter than expected, lifting expectations for higher interest rates from the Fed and weighing on high-flying tech.
Dell and Hewlett Packard Enterprise Bracket Super Micro’s Drop
Dell Technologies (NYSE:DELL) stock is at $326.57, down 6%, a larger drop than the one at Super Micro Computer. Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) stock is at $46.45, down 2%, the smallest decline of the three. Both companies sell NVIDIA-powered AI servers, and they’re trading in step with the chipmaker’s slide.
Valuations split the three in ways the daily moves don’t show. Its trailing P/E ratio of 8x is the group’s lowest. Yet Super Micro Computer carries that trailing price-to-earnings (P/E) ratio and is the only one of the trio down for the year. A higher but still moderate trailing P/E of 18x belongs to Dell. Even after the slide, Dell stock is up 162% YTD.
Hewlett Packard Enterprise stock is up 96% YTD. Its trailing P/E of 1,107x reflects GAAP earnings. Those generally accepted accounting principles (GAAP) earnings are weighed down by Juniper Networks acquisition costs, so it doesn’t screen as cheap on that measure.
How Super Micro’s Business Differs From Dell and Hewlett Packard Enterprise
Super Micro Computer is a focused AI infrastructure builder that sells complete racks and liquid-cooled systems through its Data Center Building Block Solutions (DCBBS) architecture, and that focus gives the company more direct exposure to NVIDIA’s product cycle than either peer carries. Manufacturing in the U.S., Taiwan and the Netherlands lets Super Micro Computer ship at scale to large cloud and enterprise customers.
Dell runs a broader enterprise information technology (IT) platform, pairing AI-optimized servers, storage and networking with a large personal computer business. Hewlett Packard Enterprise leans harder on networking after absorbing Juniper Networks, adding routing, campus and data center switching and security alongside servers, storage and financial services. Hewlett Packard Enterprise consequently has a smaller AI server weighting than Super Micro Computer or Dell, which may help explain its smallest drop.
What NVIDIA’s Investigation Means for Super Micro Next
Super Micro Computer now faces the question of whether NVIDIA’s board investigation stays contained or broadens into a broader fight with Beijing. Bullish investors can cite the company’s November 3 earnings call, where it set a fiscal 2027 revenue target of $72 billion to $82 billion. The bears have a offset from the same call: Super Micro Computer said one customer accounted for 44% of quarterly revenue, which chief financial officer Mark Long called “a consequence of the scale at which AI infrastructure is now being built.”
Dell and Hewlett Packard Enterprise both have quarterly reports coming up, and those results could show whether AI server orders are holding up through the NVIDIA turmoil. A quick resolution at NVIDIA could ease pressure on the whole group, while a drawn-out probe might keep weighing on server makers.
A key question is how heavily each server maker depends on NVIDIA while the board investigation plays out. For now, it’s wise to keep any position sizes small in SMCI, DELL, and/or HPE.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
