Super Micro Computer’s stock price surged 15.9% on Monday, rebounding from recent losses and reclaiming its 50-day average. Analyst Ray Wang at Constellation Research said the company appears to have recovered from setbacks that sent shares crashing.
The recent decline began in late August when Supermicro announced a delay in filing its annual report amid allegations of accounting irregularities. The stock then plummeted in October after the company’s accounting firm resigned, leading to speculation about being delisted from the Nasdaq.
However, since filing a plan to avoid delisting in mid-November, the stock has been climbing, posting gains in six of the last seven trading days. Analysts attribute this rise to resolving accounting issues and reduced investor worries.
Wang noted that Supermicro is set to benefit from the AI craze, alongside companies like Nvidia, Microsoft, and Google. As a leading provider of AI servers, Supermicro competes directly with Dell, which has also seen its stock rally during SMCI’s woes. The impact on Dell’s quarterly results will be clear when the tech giant reports on Tuesday.
SMCI’s rebound is a positive sign for investors, who had been spooked by recent news events. With the company now seemingly back on track, analysts expect Supermicro to continue performing well in the AI market.
Source: https://www.investors.com/news/technology/smci-stock-supermicro-super-micro-computer-rally