Super Micro Computer (SMCI), a provider of high-performance and high-efficiency server technology and products, has been making noise (like always) this week with big stock moves and key company news. After a period of uncertainty due to late financial reports, Super Micro filed its overdue financial statements with the SEC, avoiding a possible delisting from Nasdaq. This step has restored investor confidence, boosting the stock’s performance.
On Tuesday, SMCI’s stock jumped by 8.5%, closing at $39.14. The rise continued into pre-market trading on Wednesday, with a 3.45% increase, placing SMCI as one of the top performers in the S&P 500 (SPX) despite the broader market downturn.
Settling its Compliance Troubles Aside
SMCI recently filed its delayed financial statements with the SEC, avoiding potential delisting from Nasdaq. The company’s auditor, BDO, confirmed these statements met U.S. accounting standards. Now, the company can concentrate on what it does best: providing servers, storage solutions, and related products to its long list of clientele.
Growing Appetite
Last week, Super Micro announced plans to build a third campus in Silicon Valley, covering nearly 3 million square feet. This expansion aims to boost the production of advanced liquid-cooled solutions, with CEO Charles Liang predicting that up to 30% of new data centers will use this technology.
Just recently, Super Micro’s stock got a boost from news that Taiwan Semiconductor Manufacturing (TSMC) will invest $100 billion to build five new chip plants in Arizona. The company’s focus on direct-liquid cooling (DLC) technology makes it a good proposition in the growing AI infrastructure market.
The present and future look kind to SMCI as things stand, but investors will hope that SMCI won’t be looking to spice up its life and will be looking for a far more lucrative path for the future.
Is SMCI a Buy, Hold, or a Sell?
Turning to Wall Street, Super Micro is considered a Hold, based on nine analysts’ ratings. The average price target for SMCI stock is $47.29, implying a 22.42% upside potential.
