There could be even more pain ahead for Supermicro shareholders.
Server maker Super Micro Computer has until Nov. 16 to submit a plan to the Nasdaq Stock Exchange to regain compliance with listing rules.
The company has yet to relieve investor concerns over its internal controls.
Super Micro Computer stock (NASDAQ: SMCI) has declined by about 49% over the past month and remains down by over 80% from highs seen earlier this year. Now the data center solutions company, which sells server systems, server management software, and installation and maintenance services, has been a big winner in the generative AI space, as demand for its server systems surged in tandem with the likes of GPU major Nvidia.
Following the last several months of challenges, management must act fast to win back investors.
The bad news continues to pile up for Supermicro.
Super Micro Computer has had an extremely volatile FY2024 stock price performance, indeed, as observed in the meteoric rise in Q1'24 and the subsequent losses through November 2024. The short seller report, delayed 10K filing, auditor resignation, and non-compliance with Nasdaq listing have triggered its uncertain prospects and elevated short interests. This is on top of the rerouted client orders to other suppliers, with it already contributing to SMCI's underwhelming FQ2'25 guidance.
Demand for Supermicro's products has taken off with the artificial intelligence boom.
Interested investors should be keeping an eye on the stock.
Super Micro Computer, Inc. experienced extreme volatility in 2024, with a dramatic 66.03% decline followed by a further 45.63% drop, defying mean reversion strategies. Despite recent declines, SMCI's forward P/E ratio of 6.785x and forward P/S ratio of 0.478x make it highly attractive compared to industry peers. The stock's current trading levels suggest potential for limited downside, with key support at $15.83 and RSI indicating oversold conditions.
The artificial intelligence business's financial statements are late, and the stock price has been more volatile than usual.
The unfolding challenges at Super Micro Computer (NASDAQ: SMCI) continue to stir market uncertainties, especially as it edges closer to a potential delisting from Nasdaq.