Super Micro risks being delisted from Nasdaq

Super Micro is in danger of being delisted from the Nasdaq due to its sharp decline since March, which has destroyed around $55 billion in market valuation . The chip maker said it will provide a “business update” regarding its latest quarter on Tuesday (Election Day in the US.)

Investors continued to flee Super Micro on Friday after the business lost its second auditor in less than two years, causing the stock to lose another 11%, bringing the sell-off this week to 45%.

The company’s shares ended at $26.05. This erased all of the gains from 2024. The stock’s value more than quadrupled for the year by March, when it peaked at $118.81. Earlier that month, the S&P Dow Jones put the stock in the S&P 500, reflecting Wall Street’s embrace of the company’s growth, driven by sales of servers loaded with Nvidia’s AI technology.

Super Micro’s announcement in August that it would not submit its annual report to the SEC on time was the catalyst for the company’s subsequent difficulties. After revealing a short position in the company, renowned short-seller Hindenburg Research reported “new evidence of accounting manipulation.” Later, according to the Wall Street Journal, the Department of Justice was only beginning its investigation into the business.

Just 17 months after replacing Deloitte & Touche as its accounting firm, Super Micro announced on Wednesday that Ernst & Young had left the company. It was “unwilling to be associated with the financial statements prepared by management,” EY said

Super Micro stated in an August results presentation that revenue more than doubled for a third consecutive quarter, even though the company had not submitted financial statements to the SEC since May. According to LSEG, analysts anticipate that revenue increased by more than 200% to $6.45 billion for the fiscal first quarter that concluded in September. This represents an increase from $1.9 billion in the same fiscal quarter of 2023 and $2.1 billion in the previous year.