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Supermicro Surges Over 23% After Filing Delinquent Reports, Regains Nasdaq Compliance

February 26, 2025
Smart Money

Super Micro Computer Files Delinquent Reports to Regain Nasdaq Compliance

San Jose, CA — Super Micro Computer, Inc. (SMCI), a specialist in data-center hardware, took significant steps late Tuesday to avert delisting from the Nasdaq stock market by filing several overdue reports with the U.S. Securities and Exchange Commission (SEC). The timely filing not only addressed compliance issues but also resulted in a substantial surge in the company’s stock price.

Regaining Compliance with Filing Requirements

The San Jose-based company filed its annual report for fiscal 2024, which concluded on June 30, along with two crucial quarterly reports for the periods ended September 30 and December 31. Supermicro needed to complete these filings by the end of the day to meet Nasdaq’s listing requirements and maintain its position on the exchange.

In an official news release, Supermicro announced that it is now up to date with its SEC financial reporting obligations and clarified that there were no restatements needed for its previously filed financial statements. Nasdaq staff confirmed that Supermicro has regained compliance with its filing requirements, effectively closing the matter.

Supermicro’s Chief Executive Officer, Charles Liang, expressed optimism about the company’s future in light of the successful filings. “With our financial reporting now current, we can now fully focus on executing our proven winning growth strategy through technology, product and solution innovations, time-to-market advantage, global footprint, and green computing,” Liang stated.

Market Reaction: Stock Surge

Following the news, Supermicro’s stock experienced a dramatic rise of more than 23%, closing at 56.43 in after-hours trading. The company’s shares had seen considerable fluctuations earlier this year, peaking at an all-time high of 122.90 in March 2024, before facing a downturn due to accounting concerns raised in August.

Challenges Faced by Supermicro

The company’s difficulties began on August 27 when the short-selling firm Hindenburg Research accused Supermicro of accounting manipulation, export control failures, and other customer-related issues. These allegations prompted Supermicro to announce a delay in the filing of its annual report with the SEC.

On October 30, Supermicro disclosed that its accounting firm, Ernst & Young, had resigned over financial reporting concerns. In response, the company hired BDO USA as its new independent auditor on November 18. However, a positive development emerged on December 2 when an independent special committee concluded that there was no accounting wrongdoing at Supermicro. This announcement resulted in a notable boost in shares, which surged nearly 29% to 42 as investors reacted favorably to the news.

Conclusion

Supermicro’s actions to address compliance issues and restore investor confidence have resulted in a significant bounce back in its stock price. With its financial reporting now current, the company is poised to continue its focus on innovation and growth within the robust data center market, particularly as it serves as a key partner to AI chip leader Nvidia.

Investors and market analysts will be closely watching Supermicro’s progress as it continues to navigate the complexities of financial reporting and seeks to reinforce its position within the competitive tech landscape.

For updates on Supermicro and other technology stocks, follow Patrick Seitz on X, formerly known as Twitter, at @IBD_PSeitz.