With its shares so far more than doubling year, Super micro computer (Nasdaq: SMCI) Bouncing back from the crisis caused by uncertainty about accounting practices. But is this recovery a coincidence or the start of a new bullrun? Let us dig deeper to determine what 2025 has in store for this hardware company Artificial Intelligence (AI).
Super Micro Computer, founded in 1993, has long been one of Silicon Valley’s most prominent makers of server and data center hardware. Nevertheless, the shares in relative darkness got away, with shares that are practically level from 2015 to 2021, until the rise of chatgpt in 2022 an Epic Bull-Run led to a record high of $ 119 at the beginning of 2024.
Supermicro, as it is known, helps to turn graphic processing units (GPUs) made by chip makers such as Nvidia And Advanced micro devices In ready-made computer servers. It specializes in energy-efficient designs that can save customers money while running and training AI algorithms.
With this employee of the intermediary, the company can indirectly benefit from the innovations of its partners in chip design and to enjoy explosive operational growth.
Supermicros Bull Run was already detained in mid-2024, but the decreases came to a peak in August when the famous short-seller Hindenburg investigation published a destructive report that the accused of accounting manipulation, devasion of sanctions and other serious violations.
Shortly thereafter, Supermicro delayed the submission of his annual report for the tax year 2024. And his former Auditor Ernst & Young resigned, referring to an unwillingness to be associated with his financial statements.
Where there is smoke, there is often fire, and this was a lot of smoke. Moreover, the company has a history of regulations problems. In 2020, the Securities and Exchange Commission Fined the $ 17.5 million for accounting violations. In 2018, shares were removed from the Nasdaq Exchange due to a decline in financial reporting.
Investors feared that the recent dossering delay could ensure that Supermicro was removed again, which could harm the share price by making shares less liquid and draging away more risk -aging institutional buyers.
However, it seems more and more likely that this will not be the case. Management believes that it will be able to submit its delayed financial reports by 25 February and repeats his claim that none of his earlier archives should be restricted.
This update is a hugely positive sign for Supermicro because it suggests that the fear of an accounting scandal can be exaggerated, which means that attention is returned to the excellent operational momentum of the company.
