Shares of Super Micro Computer Inc (NASDAQ: SMCI) rose over 30 per cent on Tuesday as a result of appointing a new auditor, relieving concerns about its financial reporting practices.
The company appointed BDO USA as its new auditor, replacing Ernst & Young, which resigned earlier this month.
This moves the company towards compliance with Nasdaq’s listing requirements, and has likely reassured investors about the company’s governance and financial transparency.
The company has also announced steps to meet Nasdaq compliance, which included submitting a compliance plan to avoid delisting.
This action has been positively received by the market, as it reduces the risk of the company losing its Nasdaq listing, which would have significant implications for its stock’s liquidity and visibility.
“We are pleased to welcome BDO as Supermicro’s independent auditor,” said Charles Liang, chief executive officer.
“BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency.”
Super Micro continues to lead in high-performance server solutions, particularly for AI applications, with a strong emphasis on liquid-cooled server technology.
Recently, the company unveiled a supercluster solution designed for trillion-parameter-scale generative AI models, utilizing the NVIDIA Blackwell platform. This strategic focus aligns seamlessly with current market priorities, where advancements in AI and improved data center efficiency are driving demand, positioning Super Micro for sustained growth.
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SuperMicro expands manufacturing to support growth
Investor sentiment has turned increasingly bullish, as reflected on social media. Mentions of a “Bullish Island Gap-Up” on technical charts suggest the stock is recovering from oversold conditions.
This positive technical signal, combined with recent encouraging announcements, appears to have sparked a surge in buying momentum.
Additionally, Super Micro is expanding its manufacturing capacity to support its growth ambitions. Progress at its Malaysia site highlights the company’s preparedness to meet increasing demand while showcasing its ability to scale operations effectively.
This expansion not only underlines its growth strategy but also bolsters investor confidence in its long-term potential.
SMCI stock reached an all-time high of USD$122.90 on March 8 before encountering challenges.
Earlier this year, Super Micro Computer shares surged as hyperscale cloud computing firms increased spending on AI data center equipment.
Furthermore, competitors like Dell Technologies (NYSE: DELL) have moved to capture market share from Super Micro during its period of weakness.
On Monday, three Wall Street firms—Mizuho Securities, Morgan Stanley, and Wells Fargo—raised their price targets for Dell stock. The three firms maintain a buy rating across the board.
In contrast, Barclays on Friday joined other brokerage firms in suspending coverage of SMCI stock, citing Super Micro’s ongoing operational difficulties.
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