Super Micro Computer (SMCI) stock fell by 8.3% to close at $33.44 on Monday, following Nasdaq’s decision to drop the AI data center specialist from its Nasdaq 100 index. This move occurred just before the open on December 23, when SMCI joined the index in July.
The stock has struggled due to accounting and financial reporting issues, with Supermicro yet to file its reports for the fiscal year ended June 30 and the quarter ended September 30 with the U.S. Securities and Exchange Commission. However, customers appear to be sticking with the company despite these challenges, as reported by JPMorgan.
The stock’s decline also saw it drop below its 50-day moving average line, a technical support level. Despite this, SMCI has still managed to post an 18% gain year-to-date. The company’s split-adjusted all-time high was reached on March 8 at $122.90.
Supermicro’s removal from the Nasdaq 100 index comes amid concerns about its financial reporting and accounting practices. However, customers have shown support for the company, with data center operators continuing to keep their orders in place.
Source: https://www.investors.com/news/technology/smci-stock-nasdaq-100-dumps-supermicro