Super Micro Computer (SMCI, Financial) shares nosedived almost 10% on Thursday morning session, reversing gains from the prior session. The artificial intelligence server maker had surged after filing overdue financial reports on Tuesday, avoiding a potential Nasdaq delisting. However, enthusiasm faded despite strong earnings from Nvidia (NVDA, Financial).

• Warning! GuruFocus has detected 4 Warning Signs with SMCI.

The company blamed the delay on its former auditor, Ernst & Young, who resigned in October 2024 over concerns about governance and financial transparency. In response, Supermicro's audit committee launched a review and concluded that its financial statements remained accurate and reliable.

In November 2024, Supermicro appointed BDO as its new auditor. The firm confirmed in regulatory filings that the company's financial reports "present fairly, in all material respects, the financial position of the Company."

Despite the pullback, shares are up 51% year to date and have surged over 1,000% since 2022, driven by strong demand for AI-focused server technology.