Super Micro jumps as planned “business update” fuels hopes that it will avoid Nasdaq delisting

Super Micro Computer is being given a big pat on the back for simply doing something basically every company does: telling its investors how things are going, business-wise.

Shares of the server company are rallying after the embattled tech company said it would provide a quarterly business update on February 11 after market close.

This is not the only filing that investors will be keeping their eyes on from this company, nor the most important: Super Micro Computer still hasn’t filed its annual report for the 12 months ending June 2024.

The stock is the second-best performer in the S&P 500 in the premarket this morning, with investors seemingly viewing this communique as a signal that the company will become current on its filing obligations.

Nasdaq has allowed the company to be delinquent in producing documentation amid a drawn-out delay that followed allegations from short seller Hindenburg about various accounting irregularities. However, Nasdaq’s patience has its limits: the company will face delisting from the exchange if filings are not received by February 25.

The server company was bounced from the Nasdaq 100 in late 2024 after spending less than six months in the tech-heavy index.

“The company is still exposed to headline risk since it hasn’t filed its delayed 10-K/10-Q,” Bloomberg Intelligence Senior Analyst Woo Jin Ho wrote. “From a business perspective, AI demand fundamentals are healthy, and Super Micro could deliver 2Q sales in-line with consensus of $5.8 billion.”

Its auditor, Ernst & Young, resigned not long after the accounting issues became public, citing questions over management’s commitment to integrity and ethical values around internal controls. A subsequent internal review commissioned by the company found no management misconduct.