In the third quarter, the Nasdaq (QQQ) lost around 2% but is still up nearly 20% for 2024. In that time, stocks that lost more than 20% included Super Micro Computer (SMCI), Intel (INTC), CrowdStrike (CRWD), Micron Technology (MU), and Snowflake (SNOW).
SMCI stock has the highest risk. The firm did not find an auditing firm to sign off on its annual report. Shares are in a holding pattern at around $41. Speculators are willing to bet that the server supplier in the AI markets will resolve the filing delay. Investors may consider Dell Technologies (DELL) instead. The S&P 500 (IVV) added DELL stock to the index.
Intel admitted in the quarter that ramping up Gaudi servers for the AI market will increase costs. In the PC market, the company found a fix for its unstable 14th-generation i9 CPUs.
Memory supplier Micron recovered slightly after posting strong quarterly results and issuing strong guidance. MU stock still trades in value territory at a forward P/E of 11.5 times.
Snowflake, a software firm, risks falling below $100 a share. Warren Buffett’s Berkshire Hathaway (BRK-B) sold its entire stake. Snowflake recently raised $2 billion, using some of the proceeds to buy back stock. This is not a shareholder-friendly move.
After causing a global outage, CrowdStrike is unlikely to lose customers. The stock added around $100/share from its 52-week low.