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Why SoundHound AI and Serve Robotics Stocks Plunged in February While Super Micro Computer Soared
SERVServe Robotics Inc.(SERV) The Motley Fool·2025-03-05 16:28

Group 1: Stock Performance Overview - SoundHound AI and Serve Robotics experienced significant stock declines in February, with drops of 23.5% and 45.7% respectively, while Super Micro Computer's shares surged by 45.4% [1] - Super Micro Computer is classified as a large-cap company with a market cap of 23billion,whereasServeRoboticsisasmallcapstockwithamarketcapofunder23 billion, whereas Serve Robotics is a small-cap stock with a market cap of under 400 million [2] Group 2: Nvidia's Influence - Nvidia's recent 13F filing revealed it sold its investments in SoundHound and Serve, leading to substantial declines in their stock prices as investors interpreted this as a negative signal for both companies [3][4] - The sale of Nvidia's holdings raised concerns about the future of Serve Robotics, especially after Nvidia disclosed a new investment in Nebius Group, which has its own robotic delivery segment [5] Group 3: Super Micro Computer's Recovery - Super Micro Computer, a supplier of servers and cooling systems for Nvidia hardware, saw a recovery in its stock after filing delayed reports with a new auditor, regaining compliance with Nasdaq [6][7] - Despite the recovery, Super Micro's stock ended February about one-third off its highs for the month, indicating ongoing volatility [7] Group 4: Market Reactions and Future Expectations - The significant stock movements in February are viewed as market overreactions, which is common for these technology stocks that had previously seen gains due to Nvidia's investments [8] - Investors are advised to expect continued volatility from these stocks, as the market may react strongly to news and developments surrounding them [10]