/Super%20Micro%20Computer%20Inc%20HQ%20photo-by%20Tada%20Images%20via%20Shutterstock.jpg)
Super Micro Computer (SMCI) rallied another 15% on Monday in the buildup to its quarterly earnings release scheduled for tomorrow, Feb. 11.
On the earnings call, investors will look for more color on when management expects to file the annual report for the fiscal year ended June 30, 2024. The Nasdaq Exchange has allowed SMCI until Feb. 25 to file its 10-K. Failure to adhere to that deadline could result in the delisting of the artificial intelligence (AI) company, which is based out of San Jose, California.
Including today’s surge, Super Micro stock is up nearly 45% from its low on Feb. 3, when it first announced plans to report its second-quarter financials for fiscal 2025.
Here’s Why Super Micro May Sell Off After Earnings
Wedbush analyst Matt Bryson is convinced that Super Micro Computer will either file its long-due annual report by Feb. 25 or secure a 180-day extension before the deadline. In either case, the risk of a delisting is minimal, he told clients in a research note on Monday.
That said, Bryson is not convinced that SMCI is worth buying at the current price as there are “substantial unknowns” that could weigh on the company’s share price moving forward.
For example, Super Micro reportedly lost share in AI contracts to rivals, including Hewlett Packard Enterprise (HPE) while it was struggling with the accounting fiasco that made its auditor EY resign in October 2024.
Wedbush currently has a $24 price target on SMCI stock that indicates potential downside of more than 20% from here.
Is SMCI Priced to Perfection Headed Into Q2 Earnings?
It’s reasonable to believe that a minor setback on Feb. 11 will trigger a sharp selloff in SMCI as it has already rallied more than 50% since last Monday.
Plus, an exceptional surge in shares of Super Micro Computer ahead of its quarterly earnings may be a classic case of “buy the rumor, sell the news.”
Investors should note that Wedbush is not alone in keeping dovish on SMCI stock in 2025. Susquehanna analyst Mehdi Hosseini also currently has a “negative” rating on SMCI – and warns of an even steeper crash to $15.
In related news, SMCI recently said it has accelerated full production of its solutions powered by Nvidia’s (NVDA) latest Blackwell chips. Investors will be looking for further updates when the company shares its fiscal Q2 results.
