"Two AI stocks reporting after Tuesday's close may be adding to the pressure. The Vanguard S&P 500 ETF ( NYSEMKT: VOO) suffered its steepest selloff in months yesterday, down 1.2%, as investor worries over the rich valuations of AI stocks came to the fore. Selling seems set to moderate as Wednesday dawns, but the selling's still there; premarket, the ETF looks set to open down 0.1%."
"The semiconductor giant beat earnings by three cents last night, reporting $1.20 per share on sales of $9.25 billion. CEO Dr. Lisa Su said AMD had "an outstanding quarter, with record revenue and profitability reflecting broad based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators." She also guided investors to expect $9.6 billion in Q4 revenue, $400 million ahead of analyst estimates."
"The news is even worse for investors in AI server-maker Super Micro Computer ( Nasdaq: SMCI), which missed on its earnings by four cents last night. Profit for the fiscal first quarter 2026 came in light at $0.35 per share, and revenue was nearly $800 million short of forecasts at $5 billion. Management insists Super Micro is still growing, however, citing a "rapidly expanding order book" with "more than $13B in Blackwell Ultra orders," and predicting "at least" $36 billion in revenue for fiscal 2026."
The Vanguard S&P 500 ETF (VOO) experienced its steepest selloff in months, dropping 1.2%, with a premarket indication of a 0.1% opening decline. Two AI-related companies reporting after the close contributed to market pressure. Advanced Micro Devices reported $1.20 per share on $9.25 billion in sales, beat estimates by $0.03, and guided $9.6 billion for Q4, yet its stock traded down nearly 3% premarket. Super Micro Computer missed earnings by $0.04, posted $0.35 per share and roughly $5 billion in revenue, cited a large Blackwell Ultra order book, and forecasted at least $36 billion for fiscal 2026, while its shares fell almost 8% premarket.
Read at 24/7 Wall St.
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