Super Micro Computer, a leading computing company, experienced a significant stock value collapse by 70%, an estimated loss of about $50 billion in late October 2021. This massive drop underscores the risks associated with the hype around artificial intelligence.
Super Micro was previously hyped as an AI powerhouse with potential for substantial growth. Its performance in recent years, however, failed to live up to these expectations. The company’s stock took a hit after a series of events, including a false claim by Bloomberg that the company’s motherboards had been hacked. The article alleged that Chinese spies had implanted tiny microchips in Super Micro’s servers for surveillance purposes, which the company strongly denied and no proof was ever found.
This incident raised serious questions about the company’s supply chain security and had detrimental effects on its reputation and stock prices. The market’s disappointment in Super Micro’s performance may suggest that investors are becoming more cautious about betting big on AI hype.
However, Super Micro’s fall does not necessarily signal a downturn in the general AI field. While the hype around AI is certainly high, the technology continues to rapidly evolve and finds increased application in various industries. Companies developing AI need to balance expectations with realistic progress and growth.
