Super Micro Computer (SMCI) has revamped its board and senior leadership to improve accountability and prevent future mistakes. The company has appointed industry veteran Scott Angel as an independent director to the board. Additionally, Yitai Hu has been promoted to General Counsel and Senior Vice President, Corporate Development, and will be reporting directly to CEO Charles Liang.
SMCI provides a broad range of IT solutions for artificial intelligence (AI), Cloud, Storage, and 5G/Edge. Last year, SMCI struggled with accounting flaws, financial reporting delinquencies, and a sudden auditor exit, which raised the possibility of the stock being delisting from the Nasdaq stock exchange. However, the company has now become current with its SEC (Securities and Exchange Commission) filings and seems determined to avoid repeating past mistakes by strengthening its senior leadership with the right people. Liang is excited about the appointments, as they support the company’s growth strategy and position SMCI as a larger player in the AI space.
SMCI’s Strategic Leadership Changes
Angel brings a nearly four-decade experience in the audit and assurance practice at Deloitte, with a focus on the technology and semiconductor sectors. He also has experience in the risk and compliance division, which was one of the root causes of SMCI’s problems last year. Liang believes that Angel’s expertise in accounting, audit, consulting, and financial advisory could help bring valuable insights and perspectives to the board.
At the same time, Hu’s promotion will strengthen SMCI’s in-house legal department, as he comes with a three-decade long experience in intellectual property rights, corporate governance, technology, and mergers and acquisitions. Hu has also worked as a partner at several renowned AmLaw 50 law firms and is internationally recognized in his field.
Is SMCI a Risky Investment?
Analysts prefer to remain on the sidelines on Super Micro Computer stock until the dust settles. In the past year, SMCI stock has plummeted nearly 67% due to the company-specific issues mentioned above.
On TipRanks, SMCI stock has a Hold consensus rating based on four Buys, four Holds, and two Sell ratings. Also, the average Super Micro Computer price target of $49 implies 43.1% upside potential from current levels.
