Super Micro Computer (SMCI) reportedly will file a plan with the Nasdaq Stock Market on Monday that will allow the data centre specialist to avoid being delisted from the exchange. SMCI stock surged on the news but is well off its intraday highs.
- Compliance Deadline: Super Micro had a deadline until Monday to submit a plan to regain compliance with Nasdaq’s listing requirements due to delayed financial reporting for the fiscal year ended June 30 and for the first quarter of fiscal 2025.
- Stock Movement: SMCI stock rose over 14% in late morning trading, although it had initially spiked over 22% earlier in the session.
- Historical Highs and Lows: The stock reached an all-time high of $122.90 on March 8 but has since faced significant declines.
- Auditor Concerns: The company’s previous auditor, Ernst & Young, resigned on October 24, citing issues with the company’s financial reporting.
- Market Context: Super Micro has benefited earlier this year from increased demand for AI data center gear from hyperscale cloud computing firms, despite facing competitive pressures from companies like Dell Technologies.
As Super Micro prepares to address its reporting issues, the market’s response appears cautiously optimistic, influenced by both the company’s strategic moves to regain compliance and broader industry dynamics.
