Super Micro blasts off after filing delinquent annual, quarterly reports

Super Micro Computer (SMCI) has proven once again why it has a reputation for being a volatile stock to hold.

After falling 11.8% on Tuesday in the regular session with the market expecting it to miss a deadline to file the necessary regulatory forms to remain listed on the NASDAQ exchange, Super Micro posted updated earnings results after the close on the final day of the deadline. SMCI stock has spiked more than 21% on Wednesday in the wake of the filings as the stock’s legions of retail traders rejoice at their luck. 

The market is receding late in Wednesday’s session as great anticipation awaits the release of Nvidia (NVDA) earnings. Nvidia is the leader in artificial intelligence (AI) chips and one of the most important suppliers of GPUs used in Super Micro’s data center servers.

The Dow Jones Industrial Average (DJIA) has dropped 0.6% at the time of writing, while the NASDAQ has given up 0.2% of ground.

Super Micro Computer news

Like a procrastinating college student, Super Micro filed its delinquent annual report for fiscal 2024, comprising the four quarters ending on June 30 of that year. Additionally, quarterly reports for the first and second quarters of fiscal 2025 (the quarters ending on September 30 and December 31 of 2024) were also filed with the Securities & Exchange Commission (SEC).

The results were in line with previous preliminary but unofficial findings reported over the past six months.

The saga began when hedge fund Hindenburg Research, a noted short seller on Wall Street, accused management of manipulating accounting statements and using related family businesses in Taiwan as suppliers without relaying that information to its board of directors. 

The short report sent SMCI shares reeling in August 2024 as it looked like a replay of what had taken place more than five years earlier. Super Micro stock had been delisted in 2019 in the fallout from that earlier mess before being relisted in 2021.

In the wake of Hindenburg’s short report last summer, Super Micro decided not to release its 10-K annual report in order to investigate its books. Its auditor, Ernst & Young, then resigned in October for what it called Super Micro’s after raising significant concerns over the company's accounting practices, internal controls and board independence.

Then it hired BDO as its new auditor last November and immediately asked NASDAQ for further time to prepare its filings. 

Loop Capital on Wednesday raised its price target on the quickly growing Super Micro to $70. Shareholders are greatly pleased with SMCI meeting the deadline of February 25, even if it was at the last minute.

On Reddit’s r/SMCIDiscussion community, one user wrote under the title 'Fuck You Hindenburg': “You put SMCI through hell because of your report and in every respect have been proven wrong.”

Others were less pleased. Another Redditor wrote,"Honestly, I’m just mad at this point. I took a great deal of stress, didn’t sell at 62 and waited since December for this shit to get to 80 just to celebrate the 10k filing with such relief and find out that price is lower than it was before.”

Indeed, SMCI stock broke to an intraday high of $56.19 but did not approach the February 19 high of $66.44. SMCI stock is up 66% over the past month but still down 48% over the past year.

SMCI stock forecast

Super Micro has put in a bullish Morning Star candlestick pattern on Wednesday. This is when the second candlestick in a pattern gaps down below the close of the first long red candlestick but is followed by a gap up for the third large green candlestick that closes above the first candlestick's open.

This should mean that the rally follows through in subsequent sessions, although in this case it might be dependent on Nvidia's earnings result for the fourth quarter.

Support sits far below in the region spanning $25.71 and $28.00 that held up in late January and early February.

SMCI daily stock chart