- Super Micro's stock skyrocketed 27% on Tuesday to its highest level in two weeks.
- The company has faced weeks of turmoil after its auditor quit and it faced possible delisting.
- The company says it will keep its Nasdaq listing while the exchange reviews a plan to regain compliance.
Super Micro Computer shares have rallied this week, fueled by the artificial intelligence darling's plan to avoid being delisted from the Nasdaq.
The stock skyrocketed 27% on Tuesday to trade at $26.72, its highest level in two weeks, after the company announced Monday it would remain listed on the Nasdaq while the exchange reviews its compliance plan. The gains add to Monday's rally of over 15%.
The company also said it hired BDO as its new auditor to help meet compliance requirements after its previous audit firm, Ernst & Young, quit in October.
"This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency," CEO Charles Liang said in a statement.
The company's announcement comes after months of turmoil in the wake of its initial compliance challenges. In August, the company announced it wouldn't meet the deadline to file its annual report with the Securities and Exchange Commission. Shortly after, Hindenburg Research said it had a short position on the company after finding evidence of accounting manipulation. In September, the Wall Street Journal reported a probe into the company by the Department of Justice.
That same month, the company said it received word from the Nasdaq that it had broken the exchange's listing rules by not filing its annual report to the SEC on time, and that the rules gave it 60 days to file its report or submit a plan to regain compliance.
Those 60 days ended on Monday, and by submitting a plan by the deadline, the company narrowly missed a delisting. The company will now keep its listing on the Nasdaq as it waits for the exchange's review. If its plan is approved, it will likely get a new deadline for the reports in February, and if it isn't accepted, Super Micro can appeal the decision.
The company said it believes it will be able to complete its reports for the year and for the last quarter, as well as stay up to date with current reports.
"In its compliance plan to Nasdaq, the Company indicated that it believes that it will be able to complete its Annual Report on Form 10-K for the year ended June 30, 2024, and its Quarterly Report on 10-Q for the fiscal quarter ended September 30, 2024 and become current with its periodic reports within the discretionary period available to the Nasdaq staff to grant," the company said in a statement.
The shares' surge comes after a steep fall from its March peak of $118.81. The stock was a big beneficiary of the booming AI trade, with close ties to Nvidia, which is a customer for its servers.
The stock price on Tuesday was down about 75% since its March closing high.