Shares of Super Micro Computer ( SMCI ) rose as much as 29% in premarket trading on Tuesday after the AI server maker filed a compliance plan with the SEC late Monday to avoid being delisted from the Nasdaq.
The company said its compliance plan shows it is on track to make delayed filings with the SEC “and become current on its periodic reports within the discretionary period that the Nasdaq staff may grant.”
Investors had been eagerly awaiting the filing after a Barron’s report after the bell on Friday said Super Micro would file its plan to avoid delisting before the deadline Monday under Nasdaq rules, citing people familiar with were on the case. The stock rose about 16% during regular trading Monday.
The AI server maker and Nvidia customer (NVDA) also said Monday that the company has hired a new accountant, BDO, after the previous accountant, EY, resigned in late October.
Even with this week’s rise, shares are down about 56% over the past three months. After surging as much as 300% earlier this year, SMCI stock is now down more than 20% in 2024.
Super Micro is grappling with the fallout from an August report from short-selling firm Hindenburg Research that shed light on possible accounting malpractice, export control violations and murky relationships between top executives and Super Micro partners.
After the Hindenburg report, the company postponed its annual 10-K filing with the Securities and Exchange Commission. And last week, Super Micro also delayed the filing of its most recent 10Q quarterly report with the SEC. Adding to the problems, the company is reportedly under investigation by the Department of Justice. The barrage of bad news has sent shares plummeting. In particular, EY’s resignation caused Super Micro shares to fall more than 30% in one day at the end of October.
The company’s shares also fell sharply after Super Micro’s fiscal first-quarter earnings report on Nov. 5, which missed Wall Street expectations, sending shares down 18% the day after the results.
Elsewhere on Monday, the company announced product updates at the Supercomputing Conference in Atlanta, including next-generation AI servers using Nvidia Blackwell chips.
“Supermicro has the expertise, delivery speed and capacity to deploy the world’s largest liquid-cooled AI data center projects, with 100,000 GPUs, contributed to and recently deployed by Supermicro and NVIDIA,” CEO Charles Liang said in a statement on Monday.
“We now have solutions that leverage the NVIDIA Blackwell platform.”
