Is Super Micro Computer Stock Finally Out of the Woods?
Early last year, Super Micro Computer (NASDAQ: SMCI) was one of the biggest artificial intelligence (AI) winners. The stock soared 188% in the first half as customers rushed to the equipment maker for servers, workstations, and other elements crucial to AI data centers. Earnings were on the rise, with quarterly revenue reaching levels the company used to deliver in a full year.However, questions about Supermicro's accounting practices interrupted the momentum. This started with a Hindenburg Research short report alleging accounting red flags -- and then Supermicro itself delayed the reporting of both its 10-K annual report and a 10-Q quarterly report. These are audited financial reports that publicly traded companies must file with the Securities and Exchange Commission. The delay put the company at risk for a Nasdaq delisting.To make matters worse, Supermicro's auditor resigned, representing another roadblock along the path to filing audited financial reports.Continue reading
Early last year, Super Micro Computer (NASDAQ: SMCI) was one of the biggest artificial intelligence (AI) winners. The stock soared 188% in the first half as customers rushed to the equipment maker for servers, workstations, and other elements crucial to AI data centers. Earnings were on the rise, with quarterly revenue reaching levels the company used to deliver in a full year.
However, questions about Supermicro's accounting practices interrupted the momentum. This started with a Hindenburg Research short report alleging accounting red flags -- and then Supermicro itself delayed the reporting of both its 10-K annual report and a 10-Q quarterly report. These are audited financial reports that publicly traded companies must file with the Securities and Exchange Commission. The delay put the company at risk for a Nasdaq delisting.
To make matters worse, Supermicro's auditor resigned, representing another roadblock along the path to filing audited financial reports.
