Super Micro is preparing to meet a crucial deadline set by Nasdaq. CEO Charles Liang expressed confidence that the company will submit its necessary reports by February 25. This comes after Super Micro recently appointed BDO as its new auditor in November, replacing Ernst & Young, which resigned in October over governance concerns. The company's shares fell by as much as 10% during trading on Tuesday as the deadline approaches, raising concerns about potential consequences should the company fail to comply.
Super Micro's revenue has surged dramatically, driven primarily by its sales of systems that utilize Nvidia graphics processing units (GPUs). This boom, largely fueled by the proliferation of artificial intelligence technologies, has seen the company's sales more than double in fiscal 2024, reaching $14.94 billion according to unaudited financials. Analysts anticipate a revenue projection of approximately $5.37 billion for the current quarter, marking a nearly 40% increase from the previous year.
In spite of these financial achievements, Super Micro has grappled with challenges. It has been targeted by Hindenburg Research, an activist short seller, which accused the company of accounting fraud. These allegations have contributed to volatility in the stock market, with Super Micro shares experiencing significant fluctuations. After peaking last March, shares fell to a low of about $18 per share in November. However, they have since rebounded, with the stock price rising over 55% in 2025.
The company now faces the task of filing its audited annual report for fiscal 2024 along with reports for the first two quarters of fiscal 2025. Failure to do so could result in its stock being delisted from Nasdaq. While CEO Charles Liang remains optimistic about meeting the deadline, there remains an option for Super Micro to request an additional extension of up to 180 days if needed.
Adding to its complex scenario, Elon Musk's xAI has become a customer of Super Micro systems, indicating continued demand for its cutting-edge technology solutions. This endorsement from a prominent tech figure highlights the company's technological prowess despite the financial controversies it navigates.