Super Micro Computer Inc Stock : What You Need to Know
Super Micro Computer Inc : Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high-performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete servers, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software.
Overview
Founded: 1993
Headquarters: San Jose, California, USA
Founder: Charles Liang
Industry: Technology – Server and Data Center Hardware
| Exchange | NASDAQ |
| Ticker | SMCI |
| Day Range | $31.11 – $33.49 |
| Market cap
(A valuation method that multiplies the price of a company’s shares by the total number of outstanding shares.) |
18.76B USD |
| P/E ratio
(The ratio of current share price to trailing 12-month EPS that signals if the price is high or low compared to other stocks) |
16.27 |
| Avg. volume
(The average number of shares traded each day over the past 30 days.) |
90.81M |
Upcoming Events
January 27, 2025 at 4:29 PM GMT+5:30 – January 31, 2025 at 5:30 PM GMT+5:30
Super Micro Computer, Inc. Earnings Date
Points to consider before taking the decision
Investors have experienced quite a roller coaster ride with Super Micro Computer Inc Stock . Trouble began at the end of August when a research firm, Hindenburg, published a report claiming the company engaged in questionable accounting practices. This was soon followed by a delay in submitting important financial documents and reports of an investigation by the Department of Justice. Supermicro also received a warning from the Nasdaq stock exchange about being at risk of being delisted.
Things escalated when Ernst & Young, the company’s auditor, resigned and the first-quarter financial report was delayed. Although Supermicro released some preliminary results, it couldn’t provide a full report, leading the stock price to fall significantly, reaching a low of $17.25 on November 15, down 69% from before the negative report.
However, on a brighter note, Supermicro has recently turned things around a bit. They hired a new auditor, BDO USA, and submitted a plan to the Nasdaq to regain compliance. By November 22, the stock had surged by 92% from its low.
While investors are hopeful about a recovery, there are still risks to consider if you think about buying Super Micro Computer Inc Stock. For instance, even though hiring BDO was seen as a positive step, this new auditor has had its issues. Last year, BDO was fined for mistakes in its audits, and reports indicated that many of its audits had significant errors in recent years. Although BDO is working to improve its processes, questions remain about the quality of its work, especially given that Ernst & Young had expressed serious concerns about Supermicro’s financial statements before resigning.
Super Micro Computer Inc Stock is still officially listed on the Nasdaq and has a bit more time to meet compliance rules. However, they received another warning on November 20, stating that they are still not in compliance. Investors are also awaiting a crucial report from an Independent Special Committee on how to improve the company’s internal governance, which was due on November 15 but has not yet been released.
Supermicro insists that it plans to file its required financial reports, but the timing is still uncertain. There are many unanswered questions about the company’s accounting practices, as Hindenburg’s report pointed out various concerns, such as counting sales that hadn’t happened and issues with related party transactions.
Despite these challenges, Supermicro does have strong products and is recognized by partners like Nvidia in its business dealings. While the company is better off now than when it had no auditor and faced a looming deadline, it still has a long way to go to restore confidence. The longer it takes to resolve these accounting issues, the more likely it is that investors will lose trust. Therefore, it’s wise for potential investors to be cautious. Until Supermicro clarifies its financial situation, it may not be a good option for long-term investment.
SMCI has a manageable amount of debt, and it has more cash and other liquid assets than it needs to cover its short-term bills. This strong financial position supports the company’s choice to end its loan agreements. Additionally, since SMCI doesn’t pay dividends, it shows that the company is prioritizing reinvesting in its own growth and keeping its finances flexible.
Before making a decision, take some time to look closely at the financial health of the company, including its income and expenses. If you’re interested, make sure to keep up with the latest news and developments.
Super Micro Computer has been a big winner in the generative AI space, as demand for its server systems surged as companies looked to deploy the latest GPUs using the company’s server solutions. Revenues more than doubled in FY’24, with consensus estimates pointing to an additional 80% increase for the current fiscal year. However, the AI growth story doesn’t compensate for the company’s corporate governance concerns and questions about its financial reporting.
Click here for more news :
