The stock of Super Micro Computer (SMCI) is up another 6% as momentum builds in shares of the artificial intelligence (AI) server maker.
SMCI stock has now risen 27% in the past three trading sessions. The increase has been sparked by multiple catalysts for the embattled company. First, management of Super Micro Computer have announced that they plan to provide a highly anticipated business update on Feb. 11.
Second, SMCI stock is gaining ground on reports that a new AI data center system powered by Nvidia’s (NVDA) latest Blackwell microchips is ready to launch. The positive news has led to a resurgence of Super Micro Computer’s stock following months of declines amid an accounting scandal at the company.
Getting its Mojo Back
Investors are hopeful that Super Micro Computer’s business update will provide clarity on the company’s accounting issues. The Nasdaq exchange on which SMCI stock trades has given Super Micro Computer until the end of February to file its annual accounts for the last fiscal year or risk being delisted.
Super Micro Computer delayed filing its annual accounts and saw its auditor quit last autumn as reports surfaced of accounting issues at the company. It has since replaced its senior finance team internally. At the same time, reports that Super Micro Computer’s AI data center with Nvidia is ramping up has investors feeling optimistic about the stock.
SMCI stock has declined 51% over the past 12 months.
Is SMCI Stock a Buy?
The stock of Super Micro Computer has a consensus Hold rating among five Wall Street analysts. That rating is based on one Buy, three Hold, and one Sell recommendations issued in the past three months. The average SMCI price target of $29.75 implies 10% downside risk from current levels.
Read more analyst ratings on SMCI stock
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