Data center specialist Super Micro Computer (SMCI) and artificial intelligence chipmakers Advanced Micro Devices (AMD) and Nvidia (NVDA) saw their shares hit record highs on Monday. But after an initial surge, SMCI stock, AMD and Nvidia retreated in a volatile session.

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Super Micro Computer, better known as Supermicro, saw its stock spike 14.8% to a record 485.86 after the opening bell. But it soon pulled back. SMCI stock ended the regular session up 3% to 436.24 on the stock market today.

On Friday, SMCI stock rocketed 35.9% to close at 423.36 after the company significantly raised its sales and earnings guidance for the December quarter. Supermicro has benefited from cloud service providers buying systems to run artificial intelligence applications. Supermicro sells server computers running the latest AI chips from AMD, Intel (INTC) and Nvidia.

In early trades Monday, AMD stock rose 0.2% to a record 174.65. But it ended the regular session down 3.5% to 168.18.

AMD Stock Downgraded

Earlier in the day, Northland Capital Markets analyst Gus Richard downgraded AMD stock to market perform, or neutral, from outperform, or buy. In a client note, he said investors were overestimating AI chip sales for AMD.

The stock market is experiencing “irrational exuberance” over AI, Richard said.

Elsewhere on Wall Street, KeyBanc Capital Markets on Sunday reiterated its overweight rating on AMD stock with a price target of 195.

SMCI Stock On Tech Leaders List

Meanwhile, Magnificent Seven stock Nvidia saw its shares jump 1.4% to a record 603.31 in morning trades. However, Nvidia stock ended the day up just 0.3% to 596.54.

SMCI stock is on the IBD 50 and Tech Leaders lists. AMD and Nvidia also are on the Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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