Possibly being kicked out of the Nasdaq 100 Index, Super Micro Computer's stock price plummeted by 8%
Despite the recent controversies surrounding Super Micro Computer, JP Morgan analysts stated that the server orders for Super Micro Computer remain strong, with new products expected to be released in 2025. Additionally, with the launch of NVIDIA's next-generation processors, AI-related businesses are expected to bring benefits to Super Micro Computer
The adjustment of the Nasdaq 100 Index has not yet been announced, but a number of companies' stock prices have already fluctuated significantly, and this time it's Super Micro Computer's turn.
As of the close on Tuesday, December 10, Super Micro Computer's stock fell over 8%, with analysts believing this may be due to market concerns that Super Micro Computer will be kicked out of the Nasdaq 100 Index. The Nasdaq 100 Index is composed of the 100 largest companies listed on the Nasdaq Stock Exchange and will be restructured at the end of the year, with an announcement expected on December 13.
Previously, in August, Super Micro Computer faced the risk of being delisted from Nasdaq due to its failure to submit financial reports on time. In November, Super Micro Computer stated that it had hired BDO as its independent auditor and submitted a plan to Nasdaq that met listing requirements. On December 2, Super Micro Computer stated in a statement that the preliminary findings of the special committee's investigation indicated that the audit committee acted independently, with no evidence of fraud or misconduct by management or the board.
Yesterday, Super Micro Computer's CEO Charles Liang told Reuters that he is confident that the company's stock will not be delisted from Nasdaq and that the company will submit the outstanding financial reports on time by February 25 next year. However, despite this, Super Micro Computer's current stock price is still far below the $109 high reached in March of this year, indicating that investors still lack confidence in the company.
According to a report from JP Morgan, Super Micro Computer's target price is $23 per share, suggesting about a 45% downside from the current stock price.
However, JP Morgan analysts also stated that despite the recent controversies facing Super Micro Computer, its server orders remain strong. Additionally, Super Micro Computer plans to launch new products in 2025, and the production progress at its factory in Malaysia is going smoothly, with mass production expected to begin in the first half of next year.
Furthermore, Super Micro Computer stated that the company has sufficient liquidity and expects that the AI-related business will benefit from the launch of Nvidia's next-generation Blackwell processors