Super Micro Computer (SMCI) stock spiked more than 7% premarket Wednesday, extending a weeklong surge that has seen the stock fully recover its losses from a scathing report that accused the server maker of accounting violations last summer.

Super Micro shares gained more than 16% Tuesday, reaching their highest level since Aug. 26, the day before short-selling firm Hindenburg Research published the report, which, in addition to accusations of accounting “manipulation,” alleged that the company had violated export controls and that its executives had not properly disclosed its relationships with suppliers.

Super Micro makes computer server products for data centers using Nvidia's (NVDA) AI chips and has a major deal with Elon Musk’s mammoth xAI data center in Tennessee. The stock has been on a tear in 2025, up 83% year-to-date, making it the top performing member of the S&P 500.

Its rally over the past five days was driven by the company’s business update last Wednesday, in which the company provided ambitious long-term targets, boosting investor confidence in its ability to recover from controversies surrounding the accusations in the Hindenburg report. 

The stock had plummeted in the latter half of 2024 in the wake of the report as the server maker faced an investigation from the US Department of Justice and delayed submission of its quarterly and annual SEC filings, putting it at risk of delisting by the Nasdaq. In late October, its accountant Ernst & Young resigned, saying it was "unwilling to be associated with the financial statements prepared by [Super Micro] management."

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The company has hired a new accountant, and the server maker said in December that an independent review of its business found no evidence of misconduct.

Even with its recent upswing, Super Micro shares remain far below their record closing price of $114 last March, just before the server maker was added to the S&P 500.

Super Micro said last week in its business update and preliminary quarterly earnings release that the firm is on track to submit its delayed SEC filings by Feb. 25, the extended deadline it was granted by the Nasdaq, as it looks to avoid delisting. The company is also in the process of searching for a new chief financial officer.

CEO Charles Liang also outlined ambitious targets for the server maker’s long term financial performance. During a call with investors following the update that the company has the “potential to reach $40 billion for fiscal year '26." Analysts tracked by Bloomberg had forecast 2026 revenue closer to $30 billion.

Super Micro said last week that its server systems for data centers using Nvidia's Blackwell AI chips are now in full production. 

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.

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