Nasdaq 100: Super Micro Computer Miss Drags Tech Stocks Lower in Pre-Market Today

Futures Mixed as Tech Valuation Fears Weigh on Nasdaq

U.S. stock futures were mixed early Wednesday as investors reevaluated lofty valuations in AI and megacap tech stocks following Tuesday’s sharp selloff. Dow futures edged higher by 36 points, or 0.1%, while S&P 500 futures slipped 0.2%. Nasdaq 100 futures underperformed, falling 0.4% amid renewed pressure on speculative tech names.

Tuesday marked the market’s steepest drop in nearly a month. The S&P 500 shed 1.2%, while the Nasdaq Composite slumped 2%. The Dow lost 251 points, or 0.5%, and the Russell 2000 declined 1.8%.

Selling intensified into the close, led by high-multiple AI stocks. Palantir Technologies, despite beating Q3 estimates, dropped 8% as concerns mounted over its 200x forward earnings valuation—an example of the broader skepticism around AI-driven names.

Are AI Hardware Earnings Undermining Investor Confidence?

After-hours action offered little relief. AMD slid 1% despite beating top and bottom-line expectations, reporting EPS of $1.20 on $9.25 billion in revenue versus estimates of $1.16 and $8.74 billion. Sentiment soured further after Amazon revealed it had exited its AMD position in Q3.

Super Micro Computer dropped 10% after missing on both earnings and revenue. The company posted Q1 adjusted EPS of 35 cents on $5.02 billion in revenue, below estimates of 40 cents and $6.0 billion. Its Q2 guidance also fell short of consensus.

Arista Networks also fell 10% on soft Q4 revenue guidance, while Astera Labs dropped more than 9% despite beating expectations, as management flagged margin pressures.

Is Earnings Season Still on Track?

Despite tech weakness, earnings season remains broadly positive. FactSet reports that 82% of the 360 S&P 500 companies that have reported so far have topped expectations. The index is on pace for a blended earnings growth rate exceeding 12%.

McDonald’s leads Wednesday’s early results, with Qualcomm, Arm Holdings, and Robinhood due after the bell.

SoFi’s Liz Young Thomas noted that while valuation concerns are valid, investor momentum in large-cap names remains intact. “The chase is still on,” she told CNBC. “But today, we were looking for an excuse.”

What Should Traders Watch Next?

Wednesday’s calendar includes the ADP private payrolls report, ISM services index, and weekly mortgage applications. With the Nasdaq testing key technical levels and tech leadership under pressure, market volatility is likely to persist.

Cautious commentary from Goldman Sachs and Morgan Stanley CEOs, Bitcoin’s retreat from the $100,000 mark, and weak guidance from AI hardware names suggest near-term downside risk—particularly for speculative growth stocks.

Traders should remain alert to further repricing in high-multiple sectors as the market digests both earnings quality and macroeconomic data.

More Information in our Economic Calendar.