Super Micro Computer (SMCI) stock rose greater than 20% in early trading Tuesday after the factitious intelligence server maker submitted a compliance plan with the SEC late Monday to avoid delisting from the Nasdaq.
The corporate — which partners with Nvidia (NVDA) to offer high-tech servers with its AI chips and recently scored a major deal to supply those servers to Elon Musk’s xAI — said its compliance plan shows it’s heading in the right direction to submit delayed filings to the SEC “and turn out to be current with its periodic reports inside the discretionary period available to the Nasdaq staff to grant.”
Investors eagerly awaited the filing following a Barron’s report on Friday after the bell, which stated that Super Micro would submit its plan to forestall delisting by the deadline on Monday per Nasdaq rules, citing people acquainted with the matter. The stock surged roughly 16% during regular trading Monday.
The server maker also said Monday that the corporate has hired a recent 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 yr, 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 make clear alleged accounting malpractices, violations of export controls, and shady relationships between top executives and Super Micro partners.
Following the Hindenburg report, the corporate delayed its annual 10-K filing to the Securities and Exchange Commission. And last week, Super Micro also delayed filing its most up-to-date quarterly 10-Q report back to the SEC. Adding to its woes, the corporate is reportedly being investigated by the Department of Justice. The barrage of bad news sent shares tumbling — EY’s resignation, particularly, pushed Super Micro stock down greater than 30% in a single day in late October.
Shares of the corporate also fell sharply following Super Micro’s fiscal first quarter earnings report on Nov. 5, which missed Wall Street’s expectations, sending shares down 18% on the day following the outcomes.
Super Micro rose to prominence over the past yr because the generative artificial intelligence boom propelled sales for its AI servers and other AI-related tech. In its fiscal yr 2024, Super Micro’s adjusted earnings rose nearly 90% to $2.21 per share, and revenue soared 110% to $15 billion.
Analysts expect the corporate’s earnings to grow greater than 40% within the 2025 fiscal yr, they usually see sales surging just over 70%.