Shares of Super Micro Computer (SMCI) are set to open lower Tuesday after a five-day sprint higher. The maker of artificial intelligence-optimized computers, servers, networks, storage solutions, and data center workstations fell to a low of $25.71 at the start of February, but has since raced 66% higher.
It closed Monday at $42.65, but in premarket trading today was down 5.1%. Supermicro, as the company is called, is scheduled to provide a business update after the market closes today.
Following its 10-for-1 stock split last September, SMCI stock tumbled as low as $17 a share but has battled its way back to essentially break-even. This is not the same stock that led the market higher for nearly two years.
The data center equipment maker was accused of accounting manipulation, it failed to file financial reports with the SEC for months, and the Nasdaq exchange is threatening it with a delisting if it doesn't get its paperwork in by Feb. 25.
Supermicro was cleared of any wrongdoing by independent auditors and management says it will have its financials squared away by the deadline. Its stock has been rising in anticipation of the update on its business.
Because the equipment maker has yet submitted its filings, it is not likely to provide any detailed financial information tomorrow. Still an upbeat progress report coupled with management previously saying it didn't believe it would need to restate any of its prior financial reports, could provide the fuel to send the stock soaring once more.
Data center demand continues to grow and Super Micro Computer uses the latest, most-advanced chips from all the major manufacturers. It also counts as customers all of the top hyperscalers.
After a big runup in SMCI stock over the past few trading days, if the lower price point today holds, it could be a great opportunity to buy into this discounted equipment maker.
