SMCI Stock Soars as Delisting Fears Ease
SMCI stock is higher Wednesday after the tech company reported its delayed financial results. Here's what you need to know.
Super Micro Computer (SMCI) stock is scaling the price charts Wednesday after the artificial intelligence server, software and infrastructure firm reported its delayed financial results and regained compliance with the Nasdaq.
SMCI stock was at risk of being delisted by the Nasdaq if it did not report the delayed results by February 25, which it did in a filing with the Securities and Exchange Commission (SEC) after the market closed. The company said it received correspondence from the Nasdaq that it has "regained compliance" and the "matter is now closed."
"Today's filings represent an important milestone," said Super Micro Computer CEO Charles Liang in a statement. "With our financial reporting now current, we can now fully focus on executing our proven winning growth strategy through technology, product and solution innovations, time-to-market advantage, global footprint, and green computing."
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After delaying its annual report last year, SMCI's auditor, Ernst & Young, resigned in October. The following month, SMCI announced that BDO had been appointed as its new auditor.
"In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America," BDO said in Tuesday's filing.
Is SMCI stock a buy, sell or hold?
Super Micro Computer shares have struggled on the price charts over the past 12 months, down 47% through the February 25 close vs the S&P 500's nearly 19% total return (price change plus dividends). Unsurprisingly, Wall Street is on the sidelines when it comes to the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for SMCI stock is $50.06, representing a discount to current levels. Meanwhile, the consensus recommendation is a Hold.
Financial services firm Wedbush is one of those with a Neutral rating (equivalent to a Hold) and a $40 price target on the AI stock.
"SMCI filing its financials should reduce uncertainty, and we see reasons to believe SMCI's business should expand significantly in the first half of 2026," wrote Wedbush analyst Matt Bryson in a February 12 note.
However, Bryson notes that he is hesitant to forecast as aggressively as Super Micro Computer "and we also believe SMCI's second flirtation with questionable financials will necessarily continue to weigh somewhat on the company's perceived risk profile (and the multiple investors are willing to pay)."
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