Super Microcomputer (SMCI) stocks fell more than 5% in early trading on Tuesday, closing the five-day rally, where the stock was captured nearly 60%.
Shares of Dell’s rival, Dell’s (Dell) company, which uses NVIDIA’s (NVDA)’s latest Blackwell AI chips, have surged 18% nearly $43 at its highest level since October last year . After the bell on February 11th, shares have risen ahead of the scheduled business update. Investors hope to reveal how the company is working to comply with NASDAQ to avoid delisting after a turbulent year.
Despite profits, Super Microcomputer stocks are well below the $123 last year in March, ahead of the addition of a milestone to the S&P 500. It shakes as server makers struggle to meet the high expectations of analysts and investors and tackle fallout from a poignant report published by short-seller Hindenburg Research.
Last August, Hindenburg took a short position in SMCI, denounced the company for accounting violations, export control violations and suspicious relationships between executives and key suppliers. Soon, the US Department of Justice reportedly began an investigation into Super Micro accounting practices, the accountant resigned, and the company’s quarterly revenue missed expectations. In addition, server makers faced delisting by the Nasdaq after delaying quarterly and annual SEC filings.
Hindenburg shut down in mid-January. Last year, NASDAQ granted the extension to the Super Micro an Extension to submit late applications by February 25th. The company has hired a new accountant and said the server maker has no evidence of fraud in an independent review of its business.
Super Micro reports second quarter revenue for December after Tuesday’s bell. Of the 11 analysts tracked by Yahoo Finance covering SMCI, six have a hold valuation on their stock. Analysts have confirmed that the stock has reached $40.79 over the next 12 months, slightly higher than the $40.37 price before opening Tuesday.
Laura Bratton is a reporter for Yahoo Finance. Follow her at Bluesky @laurabratton.bsky.social. Email her to laura.bratton@yahooinc.com.
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