Super Micro Computer Inc., a San Jose-based firm, is facing uncertainty as its spot on the Nasdaq 100 Index comes under threat. The company’s market value has plummeted from $67 billion to below $20.4 billion due to an auditing scandal and concerns over governance issues.
Despite this, CEO Charles Liang remains confident that Super Micro will meet financial filing deadlines and remain on track for a February resolution. The company’s robust relationships with major clients like xAI and Nvidia Corp may help stabilize its trajectory.
However, technical charts suggest a mixed story. Short-term selling pressure is evident, but medium-term strength is also present. The long-term picture looks bleak, with the 200-day SMA at $67.21 serving as a stark reminder of the stock’s fall from grace.
Analysts at JPMorgan note stability in Super Micro’s order book and customer base, highlighting “robust” orders and no significant customer churn. With Nvidia’s Blackwell product line gearing up for a major ramp in late fiscal 2025, Super Micro’s role in AI infrastructure could prove pivotal.
Friday’s decision will likely hinge on Super Micro’s market value relative to stronger contenders like Palantir Technologies Inc and MicroStrategy Inc. The clock is ticking for SMCI to prove it still belongs among tech’s elite.
Source: https://www.benzinga.com/24/12/42445956/smci-teeters-on-edge-of-nasdaq-100-is-friday-d-day-for-super-micro