Shares of Super Micro Computer traded more than 7% higher on Tuesday as investors prepared for the company's earnings next week.
Stuck in the AI server company has dropped more than 50% over the last six months and 75% since trading at a ties near $125.00 in March 2024.
The precipitous drop in Super Micro Computer stock price was sparked by reports of accounting anomalies reported by the company's accounting firm over the summer in 2024. That announcement was followed by an investigation by the Department of Justice that is still ongoing.
The company suspended its quarterly and fiscal year reporting following its earnings report in August. In September, the NASDAQ warned Supermicro Computer that it would be delisted for not meeting the exchange’s financial reporting requirements. In November, the company got an extension to the delisting with the agreement that they would Update their financial reports on February 11.
Analysts expect SMCI to report an adjusted EPS of $2.17, up nearly 8% from $2.01 in fiscal 2024. Fiscal 2026 earnings are expected to grow 9.7% year-over-year to $2.38.
Investors have been hesitant to add positions of Supermicro Computer back to their portfolio. The stock traded as low as $20 in November before the announcement of the filing extension and now traded just below $30.
Companies like Hewlett-Packard and Dell Technologies have won selection of large contracts from companies like Meta recently, a setback to the once darling in the AI sever space.
Today’s buying was done with relatively light trading volume suggesting that the move is temporary.
SMCI shares have been locked in a long- and short-term market trend that is focused on a target of $20.