The AI hardware company hired a new auditor and submitted a detailed compliance plan to the Nasdaq
Super Micro Computer stock (SMCI) surged more than 30% on Tuesday morning after the AI hardware company successfully maintained its Nasdaq $NDAQ (NDAQ) listing by hiring a new auditor. The move comes several weeks after the server company’s auditor, Ernst & Young, resigned, following months of disagreement over Super Micro Computer’s governance practices and board independence.
“We are pleased to welcome BDO as Supermicro’s independent auditor,” Super Micro CEO Charles Liang said in a statement.
Moreover, the company submitted a detailed compliance plan to the Nasdaq, outlining its efforts to meet the exchange’s requirements and avoid delisting.
The San Jose-based company expressed its ability to meet key regulatory deadlines, stating that it expects to finalize its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, as well as its Quarterly Report on Form 10-Q for the period ending September 30, 2024. The company aims to bring its periodic filings up to date within the discretionary period allowed by Nasdaq staff.
The statement has alleviated fears about the tech giant’s potential removal from the Nasdaq, putting an end to the uncertainty surrounding its listing. The news sparked a relief rally among investors, boosting confidence in the company’s ability to navigate regulatory hurdles.
Super Micro’s stock is currently trading at $27, representing a steep decline of 78% from its March peak of $123.
Super Micro makes hardware that supports AI applications. The stock has thrived for much of this year and entered the Fortune 500 at No. 498 as part of a frenzy over AI and related tools.
Super Micro Computer went through a rough phase in September when a short seller, Hindenburg Research, published a scathing report accusing the company of accounting red flags and questionable business dealings, including alleged sanctions evasion from exports to Russian and Chinese firms.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
