/Super%20Micro%20Computer%20Inc%20HQ%20photo-by%20Tada%20Images%20via%20Shutterstock.jpg)
A deadline for Super Micro Computer (SMCI) to file its delayed annual and quarterly financials looms large today, Feb. 25. If the company fails to meet the deadline, it risks being delisted from the Nasdaq Exchange.
The company, which specializes in server and storage systems for high-performance computing, has seen its shares fall 40% over the past year. Super Micro failed to file its 10-K annual report for its fiscal 2024, which ended in June. Its audit committee for the board of directors raised concerns over its internal financial controls, and its auditor, EY, resigned. Super Micro then subsequently failed to file its 10-Q quarterly report for the first quarter of its fiscal 2025 and most recently confirmed that its Q2 2025 filing would be delayed as well.
Nasdaq has already granted Super Micro a 180-day extension until Feb. 25 to complete and file these required forms. CEO Charles Liang said earlier this month that the company intends to meet the deadline. Although a failure to do so would raise delisting risk, the company would be eligible to request a second 180-day extension.
In anticipation of Super Micro cleaning up its books and submitting its filings, shares are up almost 70% in the year to date. However, experts point out that there are at least three reasons investors should still stay far away.
Reason #1: Super Micro Needs a New CFO
Super Micro eventually concluded that it does not need to restate any of its previously filed financial reports, and that there was no evidence of misconduct. However, the company did say that its current CFO David Weigand would resign as soon as it could replace him.
The company initially announced that it would heed the recommendation of an independent special committee to replace Weigand in December 2024. However, as of February 2025, there is no news on a successor for the CFO, and Weigand spoke as part of the company’s preliminary Q2 earnings release.
The upcoming C-Suite shakeup is just more baggage for the company to sort through. It may be able to satisfy the Nasdaq by filing its delayed reports, but there will be more work for Super Micro to do to regain investor trust.
On a similar note, some bears take issue with the fact that Super Micro has gone through this before, and in recent memory. The company was delisted from the Nasdaq in 2018 after failing to file its financial reports in a timely fashion.
Reason #2: DOJ, SEC Subpoenas Still Hang Over SMCI Stock
One of the most immediate worries for investors has been the delayed financial filings. However, Super Micro also reported that it received subpoenas from the U.S. Department of Justice and the U.S. Securities and Exchange Commission. Investors have very little insight into what is happening, other than Super Micro confirming that it was “cooperating” with requests.
The subpoenas stem from a 2024 short-seller report from Hindenburg Research, which has since ceased operations. In addition to raising concerns over its financials, Hindenburg alleged that the company failed to follow sanctions and export controls, resulting in increasing exports of its products to Russia.
Super Micro says it has found no evidence of this, but investors are still reasonably concerned. Like the ongoing hunt for a new CFO, these subpoenas are just signs of the long road ahead for SMCI.
Reason #3: AI, Data Center Demand Anxieties Are Growing
Chinese startup DeepSeek shocked the market in January 2025 when it revealed its artificial intelligence (AI) model. Investors sharply reacted to reports that it was able to train this model for cheap, and without the latest Nvidia (NVD) chips. Nvidia itself lost nearly $600 billion off its market cap in a single day and other related names sold off in sympathy.
More broadly, investors are now closely scrutinizing AI capital expenditure plans from tech giants, looking to see how they translate to the bottom line. Reports from companies like Amazon (AMZN) and Microsoft (MSFT) projecting record AI spend for 2025 were met with investor skepticism.
Super Micro revealed an ambitious revenue forecast for its fiscal 2026 of up to $40 billion, dramatically higher than its fiscal 2025 projections of between $23.5 billion and $25 billion. However, as the market continues to reevaluate AI spending and demand forecasts, SMCI could stumble.
On Feb. 24, TD Cowen reported that Microsoft had canceled several leases for AI data centers despite projecting $80 billion in capex for 2025. Resulting investor anxiety led to selloffs in chip, data center, and even nuclear energy stocks. Given much of Super Micro’s work caters to the AI data center market, further updates like this could dampen its fiscal 2026 forecast and investor sentiment in shares.
What Do Analysts Think About SMCI Stock?
For these and other reasons, investors are on the fence on SMCI with a consensus “Hold” rating. Two analysts have “Strong Buy” ratings, two have “Moderate Buy” ratings, seven have “Hold” ratings and two have a “Strong Sell” rating.
The average price target of $52.68 is just above the current trading price, leaving little room for upside. However, the Street-high price target of $100 suggests shares could still double over the next 12 months.
I wrote earlier this year that SMCI could be a high-risk, high-reward opportunity for investors thanks to upside potential to its average target and a forward price-earnings ratio of 16.85x. Following its year-to-date rally, that P/E ratio is 30.15x, amplifying the need for caution.
