Super microcomputer (NASDAQ: SMCI) roared into the year with power as a leader in the fast-growing field of artificial intelligence (AI). The company makes a variety of equipment, such as servers and full-rack scale solutions, that are critical to AI data centers, and this has helped drive triple-digit revenue growth in recent quarters. The share price followed suit, rising 188% in the first half of the year.
But a series of problems that started with a short report in late August caused a drop in investor confidence – and a drop in the share price. Shares fell 22% in the four trading sessions following the brief report on accounting issues at Supermicro. They continued their declines as the company delayed their filing 10-K annual report and a quarterly report on 10 Q and lost its accountant.
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But since that news a few weeks ago, Super micro seems to have turned things around. The company hired a new accountant to complete these files, and in the latest positive news, a special committee investigating Supermicro’s accounting practices found no evidence of fraud. Could Supermicro, now trading at bargain levels, be the biggest recovery story of 2025? Let’s find out.
First, let’s look at Supermicro’s successes and problems over the past year. The company started 2024 on a strong note, reporting its first quarter of $3 billion, with revenue not exceeding full-year revenue until 2021. Demand from AI customers soared, and catalysts such as the launch of NvidiaThe new Blackwell architecture promised to help continue this momentum. Supermicro integrates chip designers’ innovations into its systems so that their new releases translate into growth for the equipment manufacturer.
Another win for Supermicro: The S&P500 invited the shares to join, showing that Supermicro had become one of the most important companies driving today’s economy. Finally, Supermicro’s shares soared so high — above $1,000 earlier this year — that the company announced a 10-for-1 stock split, with the new split-adjusted shares set to begin trading on October 1. stock price by issuing new shares to current holders, stock splits open up investment opportunities to a wider range of investors.
Then came the rough patch, launched by a brief report from Hindenburg Research that alleged “blatant accounting warnings” and other problems. Supermicro called the statements “false or inaccurate.” But the shares continued to fall as the company delayed its annual and quarterly reports and the auditor quit. This delay in reporting prompted the Nasdaq to send Supermicro a non-compliance letter, the first step towards a possible delisting.