Shares of Super Micro Computer (SMCI +6.91%), commonly called Supermicro, surged this week, jumping as much as 29.6%, according to data supplied by S&P Global Market Intelligence. As of 3:07 p.m. ET on Friday, the stock was still up 24.4%.
There were a couple of catalysts that boosted investor sentiment for the artificial intelligence (AI) hardware specialist.
NASDAQ: SMCI
Key Data Points
An end to the drama?
Supermicro has been a roller coaster ride for investors, and it's worth recounting the significant events of the past year or so to provide context. After soaring to a new record high early last year, the maker of AI-centric servers fell on hard times. A short-seller report alleging accounting misconduct and a delay in filing its annual report sent the stock into a tailspin. The company also faced the threat of delisting.
Two developments this week have helped propel the stock higher.
Earlier this week, Supermicro announced that it was at full production for its rack-scale servers that are based on Nvidia's next-generation Blackwell AI technology. Supermicro's building block architecture allows customers to design custom servers and turnkey solutions based on their individual needs.
The news that its server designs built around Blackwell were flying off production lines gave investors assurances that despite the reporting headwinds, the company's business continues to gain ground.
In another development, Supermicro announced that it would hold a conference call on Tuesday, Feb. 11, to provide a business update for its fiscal 2025 second quarter. Normally, such an announcement wouldn't be a cause for celebration.
However, investors are looking forward to an update regarding Supermicro's delayed filings. The Nasdaq stock exchange granted Supermicro an extension until Feb. 25 to file its annual report for the year ended June 30 and the quarterly report for the period ended Sept. 30.
If the company announces that it will meet this deadline, it will remove one of its final overhangs, which is what many investors have been waiting for.
The uncertainty regarding its future has weighed on Supermicro, which currently sells for just 15 times earnings. To be clear, this is something of a binary outcome. If the company submits the required filings before the deadline, the stock could soar. However, if it fails to do so, the stock could plunge to new lows.
Let the buyer beware.
