Next Week Could Be Huge for Super Micro Computer Stock. 2 Big Things Investors Need to Watch

Like a frog in a pot of boiling water, things keep getting more uncomfortable for Super Micro Computer (NASDAQ: SMCI) as times goes on.

Supermicro’s growing accounting debacle began in late August as the target of a short report from Hindenburg Research. Just a day later, the company delayed its 10-K filing. In September, the Department of Justice launched an investigation into the company over accounting issues, according to The Wall Street Journal, and last month, Ernst & Young resigned as the company’s auditor, a glaring red flag.

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Since then, the company reported preliminary fiscal 2025 first-quarter results but offered little clarity on the status of its 10-K filing and other challenges. Unsurprisingly, the company just filed to delay its 10-Q report as well.

Consequently, the stock has declined 65% since Hindenburg published its report.

Investors anxious to see where Supermicro is headed next may not have to wait very long as these issues could come to a head next week. There are two major reasons why.

A pencil sitting on top of a calendar.
Image source: Getty Images.

Supermicro received notice from Nasdaq on Sept. 17 that it was not in compliance with the exchange’s rules that require timely filing of reports with the Securities and Exchange Commission (SEC). According to that notice, Super Micro Computer has 60 days to file its 10-K or submit a plan to Nasdaq to regain compliance. That period expires on Nov. 16, which means the delisting procedure could begin as soon as Monday, Nov. 18. That would mean the stock would trade over the counter (OTC) and lose its place in the S&P 500, as well as the wide range of exchange-traded funds (ETFs) that hold the stock.

Currently, it’s unclear how the company plans to handle the delisting notice as it doesn’t seem to be on the verge of filing its 10-K statement, especially since it still doesn’t have an auditor. In the preliminary first-quarter earnings report from Nov. 5, management said it intends to take the necessary steps to get back into compliance with Nasdaq as soon as possible. Since it seems unlikely the company will file its 10-K in the next few days, investors should expect it to deliver a plan to regain compliance, though it’s unclear what that would include.

Supermicro also shared an update from its recently formed Independent Special Committee on Nov. 5, which said the Audit Committee acted independently of any influence from CEO Charles Liang, and there was no evidence of fraud or misconduct by management or the board of directors.


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