Super Micro Computer (SMCI +1.45%) stock is soaring again today. Shares were up by 17.3% as of 2:25 p.m. ET. That's on top of what has been quite a week so far. The stock has exploded higher by about 70% just this week alone.
Of course, investors following the provider of server stacks and advanced cooling systems for data center computers know of the precipitous fall from grace the company has had over the last year. The stock was down by about 70% over the last nine months of 2024.
But an important day is coming next week and investors are piling into the stock in anticipation of more positive news from Supermicro.
NASDAQ: SMCI
Key Data Points
Is Supermicro back on track?
Last week, the company released a business update that relieved some big investor concerns. Last fall its accounting firm resigned after noting issues with the company's financial reporting, internal controls, and governance. Supermicro now has its new auditor working on preparing its past due Securities and Exchange Commission (SEC) filings.
The deadline for filing its annual report for its fiscal year 2024 ended June 30 is coming on Tuesday. The Nasdaq stock exchange set the Feb. 25 deadline for Supermicro to avoid having its shares delisted. After a business update last week, the company expressed confidence that it would meet the deadline.
Additionally, investors received some impressive forward guidance from Supermicro. The update for earnings and revenue in the current fiscal quarter ending March 31 and full fiscal year 2025 were slightly disappointing. It lowered the upper end of its revenue outlook for fiscal 2025 to $25 billion from $30 billion. But investors were impressed by its prediction for $40 billion in fiscal 2026 revenue.
That growth would come from the continuing data center boom to grow artificial intelligence (AI) compute power. If that guidance comes to fruition, Supermicro shares are a good buy at recent levels. Its market cap is still under $40 billion even with today's stock surge. But the risk remains that the company could fail to meet the Tuesday deadline.
