A relief rally in Super Micro Computer (NASDAQ: SMCI) stock is back on track today after taking a breather on Wednesday. Shares of the artificial intelligence (AI) server stack provider exploded higher on Tuesday after the company announced plans to address corporate governance and accounting questions.
That rally stalled yesterday with some investors taking profits as uncertainty remained regarding Supermicro’s underlying business. But one clue that it remains on track came during the Nvidia earnings call yesterday. That helped reignite the rally today and send shares higher by 14.2% as of 2:25 p.m. ET.
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Supermicro stock has now jumped by 65% in a week, but the company still has work to do.
Supermicro has delayed filing its last two financial reports with the Securities and Exchange Commission (SEC) as it works to resolve accounting concerns. Its last auditor resigned, causing even more concern. As a result, Supermicro was on the verge of being delisted from the Nasdaq Stock Exchange.
But the company delivered a plan to the exchange to remain listed and announced on Monday that it has hired a new auditor. The stock surged on that news, but questions remain.
Investors still need to wait for the filing of the financial reports and the sign-off from the auditor. Even in a best-case scenario, Supermicro has said its sales would be lower than anticipated for the most recent two quarterly periods. That’s understandable, though, as some customers may have wanted to avoid uncertainty related to orders. Data centers housing AI servers are under construction, and any equipment order delays would be costly.
Nvidia CEO Jensen Huang said yesterday that demand remains “incredible” for its AI chips and platforms. And during Nvidia’s earnings call for investors last night, Huang eased some fears related to Supermicro’s server business. Juang was discussing Nvidia’s partner companies, and he mentioned Supermicro among other server…
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