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Super Micro Computer (SMCI+16.50%) continued its strong rally a week after reporting impressive earnings, even as U.S. stocks remained relatively stable overall on Tuesday following the long weekend.
Shares of the AI hardware company surged 13% on Tuesday, trading at $53 a piece. The sustained momentum comes as Super Micro’s latest earnings report reassured investors about its delayed annual filing and outlined an ambitious growth target for 2026.
Super Micro is working to avoid delisting by Nasdaq, with a deadline of February 25 to submit its delayed annual report to the Securities and Exchange Commission (SEC). CEO Charles Liang seemed confident that it would be submitted on time.
Since last week, investors have been bullish about SMCI’s performance. In its earnings report, the company expects to reach $40 billion in revenue by fiscal 2026, while analysts anticipated $30 billion for that period.
Last week, banking giant JPMorgan (JPM+0.85%) analysts raised the SMCI stock price target to $35 from $23 while keeping an ‘underweight’ rating. SMCI stock has risen 80% year-to-date.
2024 was a rollercoaster year for SMCI
Super Micro makes hardware that supports AI applications. Last year, the San-Jose-based company went through many ups and downs.
The SMCI stock thrived for much of 2024 and entered the Fortune 500 at No. 498 as part of a frenzy over AI and related tools.
As a key partner and reseller of Nvidia’s (NVDA0.00%) GPUs and other components, Super Micro integrates the technology into its servers to support AI workloads. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship.
Super Micro Computer went through a rough phase in September 2024 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. Following that, its auditor, Ernst & Young, resigned, citing disagreement over Super Micro Computer’s governance practices and board independence.