Super Micro Computer (SMCI) stock rose as much as 29% in premarket trade on Tuesday after the AI server maker late Monday submitted a compliance plan with the SEC to avoid delisting from the Nasdaq.
Super Micro Computer (SMCI) stock rose as much as 29% in premarket trade on Tuesday after the AI server maker late Monday submitted a compliance plan with the SEC to avoid delisting from the Nasdaq.
The company said its compliance plan shows it is on track to submit delayed filings to the SEC “and become current with its periodic reports within the discretionary period available to the Nasdaq staff to grant.”
Investors had eagerly awaited the filing following a Barron’s report on Friday after the bell, which stated that Super Micro would submit its plan to prevent delisting by the deadline on Monday per Nasdaq rules, citing people familiar with the matter. The stock surged roughly 16% during regular trading Monday.
The AI server maker and Nvidia (NVDA) customer also said Monday that the company has hired a new auditor, BDO, after its prior accountant, EY, resigned in late October.
Even with this week’s surge, shares have tumbled roughly 56% over the past three months. After gaining as much as 300% earlier this year, SMCI stock is now down over 20% in 2024.
Super Micro has been grappling with the fallout from an August report by short seller firm Hindenburg Research, which shed light on potential accounting malpractices, violations of export controls, and shady relationships between top executives and Super Micro partners.
Following the Hindenburg report, the company delayed its annual 10-K filing to the Securities and Exchange Commission. And last week, Super Micro also delayed filing its most recent quarterly 10-Q report to the SEC. Adding to its woes, the company is reportedly being investigated by the Department of Justice. The barrage of bad news has sent shares tumbling — EY’s resignation, in particular, pushed Super Micro stock down more than 30% in a single day in late October.
Shares of the company also fell sharply following Super Micro’s fiscal first quarter earnings report Nov. 5, which missed Wall Street’s expectations, sending shares down 18% in the day following the results.
Elsewhere on Monday, the company announced product updates during the Supercomputing Conference in Atlanta, including its next-generation AI servers using Nvidia Blackwell chips.
“Supermicro has the expertise, delivery speed, and capacity to deploy the largest liquid-cooled AI data center projects in the world, containing 100,000 GPUs, which Supermicro and NVIDIA contributed to and recently deployed,” said CEO Charles Liang in a statement Monday.
“We now have solutions that use the NVIDIA Blackwell platform.”
Nvidia will report its earnings for its fiscal third quarter on Wednesday.
Super Micro rose to prominence over the past year as the generative artificial intelligence boom propelled sales for its AI servers and other AI tech. In its fiscal year 2024, Super Micro’s adjusted earnings rose nearly 90% to $2.21 per share, and revenue soared 110% to $15 billion.
Analysts expect the company’s earnings to grow more than 40% in the 2025 fiscal year, while they see sales surging just over 70%.
News cited from [Yahoo Finance] – full credit goes to Yahoo and Laura Bratton is a reporter for Yahoo Finance.
