Super Micro Computer (SMCI) stock surged more than 30% on Tuesday after the company submitted a compliance plan to the Securities and Exchange Commission (SEC). The plan aims to prevent delisting from the Nasdaq, following concerns raised by short seller firm Hindenburg Research about alleged accounting malpractices and shady relationships between top executives.
The company’s stock price dropped by over 56% in the past three months, despite a significant increase of 300% earlier this year. SMCI has been grappling with the fallout from Hindenburg’s report, which also delayed its annual filing to the SEC. The company is currently being investigated by the Department of Justice and recently changed auditors after its previous accountant resigned.
However, Super Micro’s sales have seen a significant boost due to the generative artificial intelligence boom. In its fiscal year 2024, adjusted earnings rose nearly 90% to $2.21 per share, and revenue soared 110% to $15 billion. Analysts expect the company’s earnings to grow more than 40% in the 2025 fiscal year.
Source: https://finance.yahoo.com/news/super-micro-stock-surges-after-company-files-plan-to-avoid-nasdaq-delisting-130847735.html