# AI stocks dropping despite good news — bet against Super Micro

_AI-generated trading idea · SHORT · SMCI_

> Canonical page: https://commonquant.ai/research/for-you/ai-stocks-dropping-despite-good-news-bet-against-super-micro--a16ff75a-855e-4652-8389-22ebfa790c0f

Super Micro Computer crashed 9% today, showing that investors are getting worried about overhyped AI stocks, even when the company announces massive new deals. This panic was further validated when legendary investor Ray Dalio warned that the AI boom is showing classic signs of a dangerous bubble.

## Idea

When a high-flying stock drops nearly 10% despite positive news, it signals that the market has completely run out of buyers willing to hold the bag. Super Micro's weakness isn't an isolated event; it reflects a broader exhaustion in AI spending hype that is now being called out by top investors like Ray Dalio. With the stock's upward momentum clearly broken, the path of least resistance is likely lower as investors rush to take their profits.

## Key details

- Symbols: SMCI
- Timeframes: 1D
- Tags: \#technology, \#trend\_following, \#AI

## Community

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## News sources

- [Ray Dalio Sounds the AI Bubble Alarm \| Open Interest 6/3/2026](https://www.bloomberg.com/news/videos/2026-06-03/open-interest-6-3-2026-video) — Bloomberg
- [Super Micro Computer Sinks 9%, Gorilla Technology Tumbles 20% Despite $2 Billion India AI Infrastructure Deal](https://finance.yahoo.com/markets/stocks/articles/super-micro-computer-sinks-9-173757582.html) — Yahoo Finance

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