# AI stocks can't stop falling despite the hype — bet against Super Micro Computer

_AI-generated trading idea · SHORT · SMCI_

> Canonical page: https://commonquant.ai/research/for-you/ai-stocks-can-t-stop-falling-despite-the-hype-bet-against-su--dd13e907-7d4d-41ce-afce-08c21b4f208f

AI server maker Super Micro Computer plummeted 9% today, even as Wall Street continues to pour billions into AI. Legendary investor Ray Dalio also warned today that the AI boom is starting to look like a dangerous bubble.

## Idea

Super Micro Computer just dropped 9% despite the broader market's recent obsession with AI stocks. This kind of severe weakness in a market favorite often signals that investor fatigue is setting in. Adding fuel to the fire, legendary investor Ray Dalio is now publicly warning that the massive spending in the AI sector is showing classic signs of a financial bubble. When high-flying stocks break their momentum and major institutional voices warn of a top, it usually points to more selling pressure ahead as investors rush to lock in their profits.

## Key details

- Symbols: SMCI
- Timeframes: daily
- Tags: \#tech, \#ai, \#momentum

## Community

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## News sources

- [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
- [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

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