Shares of Super Micro Computer (SMCI) were down 0.2% to $29.08 early Friday, following a 15% gain on Thursday.
The server maker’s stock has seen significant swings this week, reflecting both optimism over its filing plans and concerns about potential delisting from the Nasdaq.
Despite the week’s gains, SMCI shares are still down 37% over the past three months.
Stock options suggest traders anticipate continued volatility in the coming weeks as the company works to stabilize its position.
Earnings filing delays and Nasdaq delisting concerns
Super Micro’s roller-coaster week began with its announcement of a plan to file delayed earnings reports and the hiring of a new auditor, BDO, following the resignation of Ernst & Young (EY).
Nasdaq regulations require timely submission of audited financials, and delays have placed the company at risk of being delisted.
While the announcement initially boosted investor confidence, concerns linger about the implications of the filing delay and the broader impact on the company’s market position.
Delisting could significantly impact investor confidence and liquidity for Super Micro shares.
Nvidia connection and trading volatility
Super Micro’s stock also surged earlier this week when chipmaker Nvidia mentioned it as a business partner during its earnings call.
Nvidia’s endorsement brought renewed attention to Super Micro, which has benefited from the booming demand for server infrastructure to support AI technologies.
However, the boost from Nvidia’s mention was short-lived as concerns about the delayed filings and auditor changes resurfaced.
Analysts attribute the stock’s high volatility to uncertainty surrounding the company’s ability to regain compliance with Nasdaq’s requirements.
Short-seller pressure and the Hindenburg effect
Adding to Super Micro’s challenges is the scrutiny it faces from short-seller Hindenburg Research, which targeted the company earlier this year.
The details of Hindenburg’s allegations have not been disclosed in this week’s developments, but the short-selling firm’s involvement has contributed to the heightened market sensitivity around SMCI shares.
Outlook remains uncertain
While Super Micro has taken steps to address its accounting issues and secure a new auditor, the road ahead remains uncertain.
Investors will closely monitor the company’s efforts to file its earnings reports and resolve the delisting risk.
Until then, the stock is likely to remain a high-risk, high-reward bet for traders.
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