Super Micro Computer (SMCI) stock has been on a downtrend, dropping by 7.5% on Wednesday, trading at 1:38 p.m. ET, as per data from S&P Global Market Intelligence. This decline comes amidst macroeconomic concerns and anticipation for Nvidia's Q4 report. Nvidia's stock has surged by 212% in the last year on the back of AI-driven demand, but there are apprehensions among investors that the stock may be overvalued.

As Nvidia is set to release its fourth-quarter results after the closing bell, market watchers are closely monitoring the impact it could have on not only Nvidia but also on AI-related stocks like Super Micro Computer. Despite bullish analyst coverage and an increased one-year price target of $1,300 per share by Rosenblatt's analyst team, Supermicro stock is down approximately 29% from its recent peak.

Analysts remain optimistic about Supermicro's potential for growth in the AI-focused server market, as well as its strength in liquid-cooling technologies. However, the high-risk, high-reward nature of investing in Supermicro is evident, especially given the volatility expected around the company's share price in the near future.

Investors are advised to stay informed and vigilant as Nvidia's Q4 results could have ripple effects in the AI sector, potentially providing buying opportunities for long-term investors. With uncertainties looming, caution and strategic decision-making are paramount for those considering or holding investments in Super Micro Computer and similar stocks.