There aren’t too many stocks that have had a more blockbuster start to 2024 than Super Micro Computer, Inc. SMCI. This manufacturer of high-performance storage solutions in the modular and open architecture domain saw its share price skyrocket before settling back down to more relatable levels at the end of the year. On Feb. 5, 2025, its shares shot up 8% after rising 8.6% in the session before on news that it was going to file a fiscal second-quarter update on Feb. 11. In fact, its stock rose for a second straight day upon announcing that it is ramping up to full production capacity of its latest artificial intelligence (AI) data center server solution.

The company’s stock has remained volatile over the past few months amid ongoing uncertainty about its earnings. There were major concerns about the company's accounting practices and corporate governance after short seller Hindenburg Research accused it of manipulating accounts. Thus, it pared most of the gains made over the past two or three years in the latter part of 2024.

In fact, Nasdaq has given the storage company a timeline of until Feb. 25 to file its annual accounts for the last fiscal year ended on June 30. Failing to comply, SMCI faces the threat of being delisted. So there is much chatter that next week’s update might be specifically providing an update about whether the company thinks it will meet the Feb. 25 deadline.

The company, though, continues to benefit from the demand for graphics processing units manufactured by NVIDIA Corporation NVDA and Advanced Micro Devices, Inc. AMD. It currently carries a Zacks Rank #3 (Hold), while peers Nvidia and Advanced Micro Devices have a Zacks Rank #2 (Buy) and #4 (Sell), respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While the company’s stock has surged more than 17% over the past two days, it is imperative that investors wait till the Feb. 11 update before trying to gauge the volatility surrounding the company.

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