Super Micro and Dell slide on profit-taking as Tesla and Intel extend gains, SOXX +2.39%

Super Micro Computer and Dell Technologies shed more than 5% each Monday, surrendering a portion of their post-earnings gains, as profit-taking reset valuations in the AI server segment. The broader tape was near-flat, with the S&P 500 edging up 0.19% to a record close of 7,412.84 and the Nasdaq Composite adding 0.10% to 26,274.12, while the PHLX Semiconductor ETF climbed 2.39% to $532.76, now up 35% over the past month.

Today's biggest movers

Super Micro sheds 5% as post-earnings hangover sets in and class-action clock ticks

Super Micro Computer, Inc. (NASDAQ: SMCI) fell 5.23% to $33.52 Monday, unwinding part of the approximately 20% surge that followed its May 5 Q3 fiscal 2026 earnings report. The results were mixed: earnings per share of $0.84 beat the $0.61 consensus by 38%, but revenue of $10.24 billion came in well below the $12.33 billion Wall Street had expected. Management softened the miss with Q4 guidance of $11.0, $12.5 billion in revenue, above the $11.4 billion consensus, and EPS guidance of $0.65, $0.79 versus the $0.55 estimate. As noted in last Tuesday's recap, the stock had already surged on this guidance; Monday's retreat reflects the reality that the beat-and-guide-up trade has largely been priced in. Bears are pointing to a $7.5 billion net debt position, a cash conversion cycle that doubled sequentially, and a class-action lawsuit with a lead plaintiff deadline approaching on May 26. The Hold consensus from 14 analysts, with an average price target of $37.07, leaves little margin for further multiple expansion from current levels.

Dell gives back 5% as UBS flags limited upside after a 170% rally

Dell Technologies Inc. (NASDAQ: DELL) dropped 5.15% to $247.04, with the session's catalyst being a downgrade from UBS citing limited upside following the stock's extraordinary run. Dell has climbed more than 93% year-to-date and over 170% from its 2025 lows, driven by a staggering 342% jump in AI-optimized server revenue to $9 billion in its fiscal Q4 and a $43 billion AI server backlog. The stock now trades well above the analyst mean price target of $184.64, with the Street high of $246 suggesting essentially no upside at current prices. Fiscal 2026 results reported in February showed $113.5 billion in full-year revenue, up 19% year over year, with EPS of $8.68 rising 36%. Management guided fiscal 2027 to roughly $140 billion in revenue and 33% EPS growth, which is impressive by any measure. The issue is valuation: at over $247, the consensus has been lapped. As covered in last Thursday's session, DELL had been one of the week's standout performers; Monday's pullback appears to be disciplined position management rather than a fundamental shift in the AI server demand story.

Tesla climbs 4% as robotaxi footprint widens and Piper Sandler prices in Optimus for free

Tesla, Inc. (NYSE: TSLA) gained 3.89% to $445.00, resuming its uptrend after a brief consolidation. The primary catalyst was continued momentum around the company's robotaxi rollout, now live in Austin, Dallas, and Houston, with management guiding to a dozen U.S. states by year-end. Piper Sandler published a note arguing that at current prices, investors are getting the Optimus humanoid robot program at no incremental cost above Tesla's core automotive and energy businesses, which the firm values at approximately $400 per share. That framing has resonated with growth-oriented buyers who view the robotics optionality as a free call option. Q1 2026 results, reported in April, showed adjusted EPS of $0.41 against a $0.36 consensus and revenue of $22.39 billion in line with expectations, reassuring investors that the core business has stabilized even as delivery growth slows. The company confirmed 2026 capital expenditure will exceed $25 billion, nearly triple 2025 levels, with the bulk directed at Gigafactory expansion and autonomous infrastructure.

Intel adds 4% as Apple and Google foundry deals keep the turnaround narrative alive

Intel Corporation (NASDAQ: INTC) rose 3.62% to $129.44, extending a run that has taken the stock up 228% year-to-date. The ongoing catalyst is a set of high-profile manufacturing partnerships that would have been unthinkable 18 months ago. Reports indicate a preliminary agreement for Intel Foundry to manufacture chips destined for Apple devices, reportedly facilitated in part by the U.S. federal government as part of its domestic semiconductor push. Separately, Google has confirmed it will use Intel's EMIB advanced packaging technology for next-generation Tensor Processing Unit chips. Neither deal closes the gap overnight; Intel Foundry Services reported a $2.4 billion operating loss in Q1 2026, even as group revenue of $13.58 billion handily beat the $12.32 billion consensus. Still, Freedom Broker upgraded the stock to Buy with a target of $100 following that Q1 beat on revenue, gross margin, and EPS of $0.29 against the $0.01 expected. The broader analyst community remains skeptical, with a Hold consensus and a mean price target of $65.44 that implies the stock has significantly overshot fundamentals. For now, momentum and narrative are carrying it higher.

Notable but quieter

Baidu, Inc. (NASDAQ: BIDU) rose 3.35% to $145.78 ahead of its May 18 earnings release, supported by news that its AI chip unit Kunlunxin has entered the formal pre-IPO tutoring process on China's STAR Market. Analysts estimate the unit is now worth $16, $23 billion, up from its $1.9 billion spin-off valuation. Investors are weighing that upside against a consensus expectation of a double-digit EPS decline in the upcoming quarterly print and ongoing regulatory friction around Baidu's robotaxi operations.

Alphabet Inc. (NASDAQ: GOOGL) fell 3.03% to $388.64, pulling back from the record high of $398.37 set on May 8. The retreat was a natural consolidation after a Q1 in which cloud revenue surged 63% and overall revenue grew 22% to $109.9 billion. The company raised full-year capital expenditure guidance to $180, $190 billion to fund AI infrastructure, a number that has both impressed and concerned investors focused on free cash flow conversion. With 45 analysts carrying a Strong Buy rating, the pullback is being treated as a buying opportunity by most on the Street.

Palo Alto Networks, Inc. (NASDAQ: PANW) gained 2.78% to $213.66 and CrowdStrike Holdings, Inc. (NASDAQ: CRWD) added 2.75% to $542.26 as the cybersecurity pair continued their pre-earnings drift higher. PANW reports May 26; CRWD follows June 9. PANW's SASE platform surpassed $1.5 billion in annualized recurring revenue, up roughly 40% year over year, while XSIAM recently crossed $0.5 billion ARR with more than 600 enterprise customers. Salesforce, Inc. (NASDAQ: CRM) was the day's quiet loser in the software group, falling 2.38% to $177.49 and extending a 30% year-to-date decline as enterprise software spending scrutiny continues.

What to watch tomorrow

The Bureau of Labor Statistics releases April CPI data at 8:30 a.m. ET Tuesday. Consensus estimates put the headline figure at 3.7% year over year with core month-over-month at 0.3%. A print at 4% or above would reignite rate anxiety and likely weigh on high-multiple AI names; a soft print below 3.3% could add fuel to the current rally. Beyond the immediate data point, Baidu reports May 18 with expectations low after a run of analyst estimate cuts. NVIDIA Corp. (NASDAQ: NVDA) follows on May 20, where the market will look for Q1 FY2027 revenue guidance above the $78.8 billion consensus and any color on Blackwell production ramp. Palo Alto Networks reports May 26 after the close. Iran ceasefire talks remain a geopolitical wild card after President Trump described the truce as being "on life support" on Monday.

Not investment advice.