Why Super Micro Computer Stock Soared Today

Super Micro Computer (NASDAQ: SMCI) stock ended Tuesday's trading with big gains. The company's share price closed out the session up 8.5%. It had been up as much as 12.6% earlier in the day.

After a big sell-off yesterday, Supermicro stock regained some ground as investors bought back into some artificial intelligence (AI) stocks after measuring risk factors surrounding new tariffs and other bearish catalysts. The company's share price also got a boost from news that Taiwan Semiconductor Manufacturing will spend $100 billion to build five new chip fabrication plants in Arizona.

Supermicro and other AI stocks got rocked with valuation pullbacks yesterday after President Donald Trump confirmed that new tariffs on Canada and Mexico would go into effect today. The news increased concerns that tariffs would create new inflationary pressures and make it harder for the Federal Reserve to cut interest rates.

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Source Fool.com