Super Micro Computer Inc (SMCI, Financial) shares spiked nearly 6% early Wednesday, extending a weeklong surge that has fully erased losses incurred after a scathing Hindenburg Research report last summer. The report accused the server maker of accounting manipulation, export control violations, and insufficient disclosure of supplier relationships. On Tuesday, Super Micro regained over 16% of its value, reaching its highest level since August 26, the day before the report's release.
In addition to securing a major deal with the xAI data center headed by Elon Musk in Tennessee, SMCI is also involved in the production of computer server products for data centers and in incorporating Nvidia (NVDA, Financial) AI chips. Super Micro is now the top-performing member of the S&P 500, with an 83% year-to-date gain in 2025. A recent business update detailed by CEO Charles Liang in which he painted a bright picture of the future, including projected revenue of $40 billion for fiscal year 2026, was further supportive of its rally; it is far above Bloomberg's estimate of $30 billion.
Ernst & Young's exit was only confirmed by Super Micro, who denied all allegations and hired a new accountant following the firm's disgraced departure. However, the firm is still on the path to submit its
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.