TLDR:
- Super Micro Computer (SMCI) stock surged 8% Wednesday, fully recovering from losses following Hindenburg Research’s accounting violation accusations from last summer
- The company expects to submit delayed SEC filings by February 25 deadline to avoid Nasdaq delisting, following Ernst & Young’s resignation and appointment of new auditor BDO
- CEO Charles Liang projects ambitious $40 billion revenue target for fiscal year 2026, significantly above analyst estimates of $30 billion
- SMCI stock is up 83% year-to-date in 2025, making it the S&P 500’s top performer, though still below March 2024’s record high of $114
- Company continues partnership with Nvidia for AI chips and maintains major deal with Elon Musk’s xAI data center in Tennessee
Super Micro Computer (SMCI) stock jumped nearly 8% on Wednesday, continuing its strong performance in 2025 as the company approaches a crucial SEC filing deadline. The server maker’s shares have now completely recovered from the downturn triggered by Hindenburg Research’s accusations of accounting violations last summer.
The stock closed at $60.25 on Wednesday, marking a 16% gain over Tuesday’s session. This represents the highest level since August 26, just before short-selling firm Hindenburg Research published its report alleging accounting manipulation and export control violations.
Year-to-date, SMCI stock has surged 83%, making it the best-performing stock in the S&P 500 index. However, shares remain below their record closing price of $114 reached in March 2024, when the company was first added to the S&P 500.
The recent rally follows the company’s business update last week, where CEO Charles Liang set ambitious revenue targets. Liang projected potential revenue of $40 billion for fiscal year 2026, surpassing analyst expectations of around $30 billion.
The Hindenburg Report
The company faced several challenges in 2024 after the Hindenburg report. These included a U.S. Department of Justice investigation and delayed submissions of quarterly and annual SEC filings, which put the company at risk of Nasdaq delisting.
In October 2024, the situation worsened when Ernst & Young, the company’s accountant, resigned. The accounting firm stated it was “unwilling to be associated with the financial statements prepared by Super Micro management.”
Super Micro has since hired BDO as its new accounting firm. The company announced in December that an independent review found no evidence of misconduct, directly contradicting Hindenburg’s allegations.
The server maker maintains a strong position in the AI computing market through its partnership with Nvidia (NVDA), producing computer server products for data centers. The company also holds a major contract with Elon Musk’s xAI data center in Tennessee.
Super Micro’s direct-liquid cooling technology is expected to see increased demand in 2026 due to data center heat management challenges, potentially driving sales growth.
The company’s return on equity stands at 34%, exceeding the industry average of 23%, indicating strong profitability. SMCI currently trades at 20.3 times forward earnings, below the industry average of 22.05.
February 25 marks a critical deadline for Super Micro, as the company must submit its delayed SEC filings to maintain its Nasdaq listing. The company has expressed confidence in meeting this extended deadline.
Super Micro is currently searching for a new Chief Financial Officer while working to address regulatory compliance requirements.
The stock trades above its 50-day moving average, suggesting continued upward momentum. After-hours trading saw the stock decline 5.36% to $57.02.
