Shares of Super Micro Computer (SMCI) jumped more than 30% on Monday afternoon after the server maker announced that an independent review of its business found no evidence of fraud or misconduct.
The company, which is working with Nvidia (NVDA) to power high-tech servers with its AI chips, also said it will look for a new chief financial officer based on recommendations from the special committee conducting the review. Current chief financial officer David Weigand will continue in this role until his successor is appointed.
Super Micro said the review took more than three months, with 68 witness interviews from current and former employees, management, consultants and board members.
“The evidence reviewed by the Special Committee does not raise any substantial concerns about the integrity of the company’s senior management or Audit Committee, or their commitment to ensuring that the company’s financial statements are materially accurate,” the company said in a statement to the SEC.
Shares of the artificial intelligence high-flyer have been on a rollercoaster after an August report from short-seller Hindenburg Research alleged, among other things, “accounting manipulation” at the company.
Following the report, Super Micro announced it would delay the publication of its annual report. Then, accounting firm Ernst & Young quit in October, saying it was “unwilling to be associated with the annual accounts prepared by management,” according to the resignation letter.
Monday’s filing said the special committee does not believe EY’s conclusions “are supported by the facts discovered by the special committee or the findings set forth in the special committee’s report.”
Last month the company announced that it had hired a new accountant, BDO. It has also filed a compliance plan with the SEC to avoid delisting from Nasdaq.
The stock is up more than 100% since hitting a 52-week low on November 15. Shares are up about 39% year to date.
On Monday, JPMorgan (JPM) analysts said they were maintaining an “Underweight” rating on the stock until there was more visibility into the company’s compliance.
“In our view, the following are key areas for investors to monitor: 1) whether the new independent auditors, BDO, accept the Special Committee’s findings or decide to conduct their own independent assessment; and 2) whether Nasdaq supports Super Micro’s plans. request an extension of time to regain compliance with Nasdaq’s continued listing requirements,” the analysts wrote.
