Super Micro shares rise as company files plan to avoid Nasdaq delisting

On By Littum

Super Micro Computer (SMCI) said in a filing with the Securities and Exchange Commission late Monday that it has submitted a compliance plan to avoid delisting from Nasdaq.

The company said its compliance plan shows it is on track to file overdue filings with the SEC “and be updated with its periodic reports within the discretionary period that Nasdaq staff may provide.”

Barron’s reported on Friday after the bell that Super Micro would submit its plan to prevent the delisting by Monday’s deadline, citing people familiar with the matter. Super Micro shares rose more than 25% in after-hours trading after the filing late Monday; the stock rose about 16% in regular trading to start the week.

Shares are down about 65% over the past three months. After gaining as much as 300% earlier this year, SMCI stock is now down over 20% in 2024.

The AI ​​server maker and Nvidia customer ( NVDA ) also said Monday that the company has hired a new auditor, BDO, after its previous auditor, EY, stepped down in late October.

Super Micro has struggled with the fallout from August report by short-selling firm Hindenburg Research, which sheds light on potential accounting errors, export control violations and shady relationships between top executives and Super Micro partners.

Following the report, the company delayed its annual 10-K filing with the Securities and Exchange Commission. Last week, Super Micro also delayed filing its latest quarterly 10-Q report with the SEC. The company is adding to its problems reportedly investigated by the Department of Justice. The barrage of bad news has sent shares tumbling – in particular, EY’s resignation pushed Super Micro shares down more than 30% in a single day in late October.

The company’s shares also fell sharply after Super Micro’s first-quarter earnings report on Nov. 5 missed Wall Street expectations, sending shares down 18% the day after the results.

Elsewhere on Monday, the company has announced product updates during the Supercomputing conference in Atlanta, including its next-generation AI servers that use Nvidia Blackwell chips.

“Supermicro has the expertise, delivery speed and capacity to implement the largest liquid-cooled AI data center projects in the world, containing 100,000 GPUs, which Supermicro and NVIDIA contributed to and recently implemented,” CEO Charles Liang said in a statement on Monday.

“We now have solutions that use the NVIDIA Blackwell platform.”

Nvidia will report it earnings for its fiscal third quarter on Wednesday.