Super Micro Computer Inc. shares surged 26% in pre-market trading Wednesday after the company filed its long-delayed audited financial statements with the U.S. Securities and Exchange Commission (SEC), narrowly avoiding a Nasdaq delisting threat. The move restores compliance with the exchange's reporting requirements and eases investor concerns that had weighed on the stock in recent months.
The server maker, known for its AI-focused computing solutions using Nvidia chips, submitted revised financials for fiscal 2024 and the first half of fiscal 2025, confirming its adherence to U.S. accounting standards. "The Company has received correspondence from the Nasdaq staff that the Company has regained compliance with the filing requirements, and the matter is now closed," Super Micro stated.
The company's auditor, BDO, verified the accuracy of the financial reports, which showed robust growth. Super Micro reported sales of $14.99 billion in fiscal 2024, more than doubling from the prior year, and reaffirmed its ambitious $40 billion revenue target for fiscal 2026. CEO and founder Charles Liang called the filing "an important milestone" and said the company is now focusing on its core business and data center strategy.
The stock's rally follows a volatile period for Super Micro, which had been under pressure after missing a Nasdaq filing deadline last year. The company was granted an extension until February 25 to submit its financials, a deadline it managed to meet just in time. Investors had been rattled by an earlier short-seller report from Hindenburg Research, which accused Super Micro of accounting irregularities. The report led to a Department of Justice probe, the resignation of its previous auditor Ernst & Young, and internal governance scrutiny.
Super Micro has denied all allegations of accounting violations, and an independent review commissioned by the company found no evidence of misconduct. The company also acknowledged weaknesses in its internal financial controls and said it is implementing corrective measures.
The stock's latest jump reversed a five-day losing streak that saw shares fall more than 18%. On Tuesday, Super Micro shares dropped 11.8% before the financial reports were released but quickly rebounded after the filing. The stock had previously staged a strong recovery in February, gaining 16% on February 19, reclaiming losses suffered in the wake of the Hindenburg report.
Goldman Sachs raised its price target on Super Micro shares to $36 from $32, maintaining a neutral rating. The stock closed at $45.54 on Tuesday, far below its March 2024 peak above $120, which came shortly after the company was added to the S&P 500.
