The AI darling at the beginning of the year is now at risk of being delisted; Super Micro's listing status is precarious after losing its auditor
Super Micro Computer faces the risk of being delisted from Nasdaq due to the resignation of its auditor Ernst & Young, and the company's stock price has plummeted over 75% since March. The company must submit a plan for regaining compliance by mid-November, and if approved, the deadline could be extended to February 2025. Analyst Matt Bryson stated that the lack of an auditor makes it difficult to complete the 10-K report on time, which could lead to delisting
At the beginning of this year, Super Micro Computer was a hot artificial intelligence stock. But just eight months after its stock price hit an all-time high, investors are questioning whether this server manufacturer will be delisted from NASDAQ and removed from the S&P 500 index. The company, whose stock price has plummeted over 75% since March, will provide a business update after the market closes on Tuesday. The most important aspect is the explanation regarding its compliance with NASDAQ obligations. Ernst & Young resigned as the company's auditor last week, citing concerns about Super Micro's integrity and ethics. This is another blow for the company following an investigation by the U.S. Department of Justice and a short-selling report released by Hindenburg Research earlier this year. After failing to submit its annual 10-K report by the August deadline, Super Micro's listing status is now precarious. According to NASDAQ rules, the company must submit a plan for regaining compliance by mid-November; if approved, it may receive additional time—extending the deadline to February 2025. However, Ernst & Young's resignation makes this goal more challenging. "I think they may ultimately be delisted due to timing issues," Wedbush analyst Matt Bryson said in an interview. "They don't have an auditor, and the previous auditor resigned; how can they possibly complete the 10-K report in just a few months?"
