Super Micro Computer (SMCI) stock rose more than 20% in early trading Tuesday after the artificial intelligence server maker Submitted a compliance plan to the SEC late Monday to avoid delisting from Nasdaq.
The company – which partners with Nvidia (NVDA) to power high-tech servers with its AI chips – recently recorded a score of Big deal To supply those servers to Elon Musk’s xAI company – it said its compliance plan shows it is on track to make late filings with the SEC “and become current with its periodic reports within the discretionary period available to Nasdaq staff to give them.”
Investors were eagerly awaiting the filing after Barron’s order a report Friday after the bell, which said Super Micro would file its plan to prevent delisting by Monday’s deadline in accordance with Nasdaq rules, citing people familiar with the matter. The stock rose nearly 16% during regular trading Monday.
The server maker also said Monday that the company has appointed a new auditor, BDO, after its previous accountant, EY, resigned in late October.
Even with this week’s rally, shares have fallen nearly 56% over the past three months. After rising as much as 300% earlier this year, SMCI stock is now down more than 20% in 2024.
Super Micro faces August fallout a report by short-selling firm Hindenburg Research, which highlighted alleged accounting mispractices, export control violations, and suspicious relationships between top executives and Super Micro partners.
Following the Hindenburg report, the company delayed its annual 10-K filing with the Securities and Exchange Commission. Last week, Super Micro also delayed filing its latest quarterly report for the 10th quarter with the Securities and Exchange Commission. This increases the company’s problems He is reportedly under investigation by the Department of Justice. The barrage of bad news sent shares tumbling — EY’s resignation, in particular, sent Super Micro shares down more than 30% in a single day in late October.
The company’s shares also fell sharply after Super Micro’s fiscal first-quarter earnings report on November 5, which missed Wall Street expectations, sending shares down 18% the day after the results.
Super micro rose to prominence Over the past year, the AI boom has led to increased sales of AI servers and other AI-related technology. In its fiscal 2024, Super Micro’s adjusted earnings rose nearly 90% to $2.21 per share, and revenue rose 110% to $15 billion.
Analysts expect the company’s profits to grow by more than 40% in fiscal year 2025, and see sales rising by just over 70%.
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