TLDR:
- Super Micro Computer (SMCI) stock surged 11.8% on Tuesday, continuing a four-day growth streak and marking a 73.5% increase over the past month
- Company expects to submit delayed 10-K report by February 25 deadline, addressing previous accounting concerns and potential Nasdaq delisting
- BDO replaced Ernst & Young as auditor after the latter resigned citing management trust issues
- Supermicro projects revenue of $40 billion for fiscal 2026, despite revising down 2025 estimates from $26-30 billion to $23.5-25 billion
- JPMorgan analysts called the 2026 target “aggressive” but raised their price target from $23 to $35
The share price of Super Micro Computer (SMCI) continued its upward momentum on Tuesday, climbing 11.8% by 1:30 p.m. ET, with earlier gains reaching 15.4%. This marks the fourth consecutive day of growth for the AI server manufacturer, whose stock has risen approximately 73.5% over the past month.
Investors are showing renewed confidence as the company approaches its February 25 deadline to file its delayed 10-K report. The annual filing was postponed following concerns about accounting practices raised in a Hindenburg Research short-seller report.
The delay in financial reporting led to additional complications in October when Ernst & Young stepped down as Supermicro’s auditor. The accounting firm cited inability to rely on management statements and questions about the independence of the company’s audit committee as reasons for their departure.
BDO has since taken over as the company’s new auditor, and early indicators suggest Supermicro will meet its upcoming filing deadline with the Securities and Exchange Commission (SEC). The timely submission is crucial for the company to maintain its Nasdaq listing status.
In its most recent business update, Supermicro adjusted its revenue projections for the current fiscal year. The company now expects sales between $23.5 billion and $25 billion, a reduction from its previous forecast of $26 billion to $30 billion.
Despite this near-term adjustment, CEO Charles Liang has presented an optimistic outlook for fiscal 2026. The company projects revenue to reach $40 billion that year, representing a 60% increase from 2025 estimates.
JPMorgan analysts have responded to these projections with measured skepticism. While acknowledging the potential upside, they characterized the 2026 revenue target as “aggressive.” The firm maintains an “underweight” rating on the stock but has increased its price target from $23 to $35.
The Turnaround
The recent stock rally represents a notable turnaround for Supermicro, though the company’s shares remain down by approximately one-third over the past twelve months. This decline largely stems from the ongoing concerns about accounting practices and delayed financial reporting.
The upcoming 10-K filing is expected to be a pivotal moment for the company. Investors appear to be betting that the report will not contain major downward revisions to previously reported business results.
The stock’s movement reflects growing investor optimism about Supermicro’s position in the AI server market. The company has positioned itself as a key player in providing infrastructure to support the expanding artificial intelligence sector.
Current trading patterns indicate strong market interest in Supermicro’s potential recovery. The stock’s performance has been particularly noteworthy given the broader market conditions and ongoing scrutiny of the tech sector.
A Turning Point?
The resolution of the delayed filing situation could mark a turning point for the company. A successful submission would address one of the main concerns that has weighed on the stock over the past year.
The contrast between the reduced near-term guidance and ambitious long-term projections highlights the complex narrative surrounding Supermicro. The company faces immediate challenges while maintaining aggressive growth targets for the future.
Market watchers are closely monitoring the situation as the February 25 deadline approaches. The contents of the 10-K filing will likely have substantial implications for the stock’s trajectory in the coming months.
As of the latest trading session, the stock continues to demonstrate strong momentum, with investors seemingly pricing in a positive outcome for the upcoming regulatory filing.
