Super Micro Computer Stock Soars Amid Recovery from Short-Seller Accusations
Super Micro Computer (SMCI) stock surged nearly 6% on Wednesday, extending a positive trend after a weeklong rally that has seen the share price fully rebound from allegations of accounting violations.
Hindenburg Report and Subsequent Developments
In August 2024, short-selling firm Hindenburg Research published a report accusing Super Micro of accounting manipulation, export control violations, and undisclosed supplier relationships. The report initially sent the stock plummeting.
Following the report, Super Micro faced a Justice Department investigation and delayed SEC filings, putting the company at risk of delisting from the Nasdaq. The company's former accountant, Ernst & Young, also resigned.
Super Micro has denied the Hindenburg allegations and hired a new accountant. An independent review found no evidence of misconduct.
Recent Rally and Long-Term Targets
The stock's recent rally has been driven by a business update last Wednesday in which CEO Charles Liang outlined ambitious long-term targets. Liang stated the company has the potential to reach $40 billion in revenue for fiscal year 2026, exceeding analyst forecasts of $30 billion.
Key Partnerships and Growth Drivers
Super Micro manufactures server products for data centers using Nvidia's AI chips and has a major contract with Elon Musk's xAI data center. The company's focus on the growing data center market and AI technologies is contributing to its growth.
Progress in SEC Filings
Super Micro stated last week that it is on track to submit delayed SEC filings by February 25, the extended deadline granted by the Nasdaq. The company is also actively searching for a new CFO.
Stock Performance Outlook
Despite the recent rally, Super Micro shares remain below their record high of $114 last March. Investors will continue to monitor the company's progress in addressing the Hindenburg allegations and achieving its long-term financial goals.