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For the second time in five years, Super Micro Computer (Nasdaq: SMCI) may face a delisting of its stock after missing the deadline to file its quarterly financial reports with the Securities Exchange Commission. The AI-focused computer maker has until November 16 to remedy a non-compliance letter from Nasdaq and to submit a plan to regain compliance.
Super Micro had been growing rapidly as an integrator of AI chips made by Nvidia (Nasdaq: NVDA). However, red flags about Super Micro’s accounting practices and board governance led to the recent resignation of its auditor, Ernst & Young. There are also concerns that Nvidia may redirect its inventory of chips to other vendors.
In March 2024, Super Micro was trading as high as $122 a share with a market cap of over $70 billion. A flurry of downgrades by analysts have now pushed the stock down to 52-week lows at around $18 a share.
