Understanding which stocks performed the best and worst in August can help you keep tabs on trends while building a strong and diverse portfolio. August was a wild ride for the market. There were considerable swings across the tech, biotech, additive manufacturing, AI, and aerospace sectors. Here’s what you need to know.
August Trading Woes
When you look at August, it’s traditionally a tricky month for traders. Past data reveals multiple financial meltdowns that began in August, including 1990, 1992, and 2008. This year was no exception, as the market headed into August with solid momentum that was quickly drained across the S&P 500 losses. These losses can be attributed to many factors, including a collapse of the Japanese stock market, which included the most significant value drop since 1987.
These market movements teed off a cascade of losses across global markets, wiping out most of the year’s gains. Only a few stocks managed to avoid the losses. Some manufacturers even showed gains due to their policies, new product releases, or other factors that enabled them to beat out the competition. Here are two of the best and worst stocks for August.
The Biggest Winner of August 2024
This month’s top-performing tech stock recommendation is INTC. Intel is one of the best-known computer chip manufacturers in the world.
Intel Corp
The company has products across the sector and is currently among the most profitable microprocessor suppliers. It specializes in a range of products, including microchips in both the server and PC markets.
Company History
Intel was founded by Gordon Moore, Robert Noyce, and Arthur Rock in 1968. At that time, the company provided SRAM and DRAm to the computer market. From there, the company expanded into microchips, which catapulted it into the spotlight and eventually helped it secure a spot as the seventh-largest tech firm globally.
Interestingly, Intel was among the first to call Silicon Valley home and has been instrumental in helping the region become a powerhouse for technology development, testing, and production. Today, this northern California community is a global center for innovation and is home to many of the world’s most successful tech firms.
Analysis
This month, Intel has outperformed most other S&P 500 stocks. While the company did feel the effects of the market drawback, recent announcements helped the stock secure +9.5% gains. Specifically, Intel announced plans to expand its chip foundry business model. News that the manufacturer was considering selling some operations to third parties as part of the strategy bolstered values further. Analysts see this move as a buy signal because it could represent a large cash infusion in the coming weeks as it shops its foundry business model to possible buyers.
Intel Corp consistently ranks high on the Fortune 500 and has a market cap of $94.24B. The stock currently shows a total yield of 2.27%. As such, those seeking a tech stock that has shown resilience to a harsh August should consider INTC.
The Biggest Loser of August 2024
This month’s biggest loser could have ended up as the biggest winner had this report been published a week earlier. SMCI was leading the pack until some controversial news changed everything. Here’s what caused SMCI to tank, what it means for traders, and what to expect moving forward from the company.
Super Micro Computer 
Super Micro Computer (SMCI) is another California-based tech firm that dominates the market. The company was founded in 1993 and has grown to become a dominant manufacturer in the server, cloud, microchip, and computer hardware sectors. Super Micro Computer was founded by Yih-Shyan Liaw, Sara Liu, Charles Liang, and Chiu-Chu Liu Liang to provide enterprise-grade information technology infrastructure to the market.
Currently, Super Micro Computer is one of the most recognizable stocks in the tech sector and until recently was among the best performing. It offers a wide selection of products to the market. These options include MicroCloud, AMD solutions, power supplies, GPU and coprocessor, SuperServer, storage, motherboards, chassis, accessories, server management products, and super workstations.
Company History
Super Micro Computer has a long and influential history in the market. The company spearheaded the opening of the Taiwan Science and Technology Park in 2016. This location remains a tech hub in the region. In 2014, the company officially moved to San Jose, California. This move enabled the company to produce a variety of new products including its X14 series AI, Cloud, Edge, Server, and Intel-based solutions.
Analysis
Super Micro Computer was riding high on its success and was even leading the tech sector with an impressive year-to-date performance of 146.8%. At the beginning of the month, the company’s stock looked enticing to traders, but a recent 28.6% decline dropped the stock price to $437.70, with a market capitalization of approximately $1.4 billion.
These losses are predicted to continue as the firm announced it would delay its 10-k stock filing. The delay came after a bombshell report released by the investment firm Hindenburg Research revealed various discrepancies in tech companies’ financials. The investigative report revealed a plethora of questionable behavior, including $983.1M in payments made to private companies owned by CEO Charles Liang’s family. This news resulted in steep losses, which most analysts predict will continue until the firm can provide viable financials for review. Currently, SMCI has a market cap of $25.63B, which is expected to decline.
Notably, some see these losses as a potential buy signal. Super Micro Computer is a prominent player in the sector and its research and development into new chips and data storage alternatives could help the company rebuff these losses in the coming weeks. If the company can straighten out these allegations promptly, they can limit these losses. For now, the stock is set for a bumpy ride as accounting irregularities and lack of transparency are the real concerns.
The Best and Worst Stocks of 2024
As August wraps up, the tech markets are still in a frenzy. A combination of game-changing developments, such as new AI algorithms, combined with election uncertainty has most traders seeking some sign of direction. Thankfully, you can take the insight gained today to develop an effective trading strategy to position your portfolio accordingly. You can learn more exciting stock tips here.
For those looking to continue riding the INTC wave upwards or buy low on SMCI, consider visiting our look at some of the top stock brokers servicing your region.