Super Micro Computer Stock Soars on Delayed SEC Filings, Market Update

Key Points:

* Super Micro Computer (SMCI) stock surged 11% in premarket trading after announcing expectations to meet the Nasdaq's Feb. 25 deadline for delayed SEC filings.
* The company revealed continuous efforts to file its delayed annual and quarterly reports.
* Super Micro missed Wall Street's estimates with preliminary Q2 earnings, reporting revenue below expectations.
* The company revised its FY2025 revenue guidance to a lower range.
* Despite the earnings miss, Super Micro's stock recovered from Tuesday's decline.
* The business update follows controversies stemming from a short-seller report, a DOJ investigation, and SEC filing delays.
* Super Micro has received subpoenas from the DOJ and SEC and is facing legal challenges, which it believes lack merit.

Super Micro Computer (SMCI) stock experienced a significant increase in premarket trading on Wednesday following an announcement that the company anticipates submitting delayed SEC filings by the Nasdaq's Feb. 25 deadline to prevent delisting.

The company, which competes with Dell (DELL) in computer server manufacturing and utilizes Nvidia's (NVDA) Blackwell AI chips, stated that it "remains dedicated to filing" its delayed annual and quarterly reports to the US Securities and Exchange Commission and "anticipates doing so by February 25." Super Micro had postponed the filings after a critical report from short-selling firm Hindenburg Research last year alleged accounting violations.

Additionally, Super Micro reported preliminary Q2 earnings after the bell on Tuesday, which fell short of Wall Street's expectations. The company expects revenue of $5.6 billion to $5.7 billion for the quarter ended Dec. 31, falling below the $5.95 billion forecast by Bloomberg consensus estimates. It has also reduced its revenue guidance for FY2025 to a range between $23.5 billion and $25 billion, lower than its previous estimate of $26 billion to $30 billion. SMCI shares initially declined by up to 19% after the earnings announcement before recovering.

Super Micro's business update comes amid a turbulent year marked by controversies following the Hindenburg report. The US Department of Justice reportedly initiated an investigation into the company's accounting practices. The company's delayed SEC filings raised the threat of delisting by Nasdaq, and its accountant resigned. Nasdaq recently granted Super Micro an extension to submit the filings by Feb. 25. The company has hired a new accountant and claims that an independent review of its operations found no evidence of wrongdoing.

Super Micro's stock had been on an upward trajectory ahead of its scheduled business update on Feb. 11 but reversed course on Tuesday. Shares fell over 9% by the end of the trading day, ending a week-long rally that saw a near 60% gain.

In its update on Tuesday, Super Micro confirmed that it had "received subpoenas from the Department of Justice and the Securities and Exchange Commission seeking documentation following allegations made in a short seller report issued in August 2024." The company stated, "The Company is responding to these document requests."

Super Micro added that it is facing "various securities litigation complaints and derivative suits" but maintains that they are "without merit."