Super Micro AI Servers Get Nvidia Boost, But SMCI Plunges 25% After Delayed Filing: Valuation Tumbles 80% In 3 Weeks

Shares of Super Micro Computer Inc. SMCI rose by 1.35% in premarket on Wednesday after the company announced an artificial intelligence server lineup with Nvidia Corp.’s NVDA GPU support. However, the stock has slumped and its valuation has fallen since its 10-K filing on Feb. 26.

What Happened: Super Micro Computer announced late Tuesday that it will be expanding its enterprise AI portfolio of over 100 GPU-optimized systems with support for NVIDIA’s latest RTX PRO 6000 Blackwell Server Edition GPUs.

Specifically tailored for the Nvidia Blackwell generation of PCIe GPUs, these servers facilitate efficient large language model (LLM) inference, fine-tuning, agentic AI, visualization, graphics rendering, and virtualization.

However, despite this development, SMCI’s stock has plunged 25.85% from $51.11 apiece on Feb. 26 to $37.9, as of Tuesday.

The company filed its delayed financial reports on Feb. 26, which pushed the stock higher after a tumultuous 2024 following a report by the short seller Hindenburg Research and the resignation of its auditor Ernst And Young.

Meanwhile, SMCI’s valuation based on its trailing price-to-earnings ratio also dropped from 89.35x to 18.23x during the same three-week period starting Feb. 26. This represented an 80% decline in SMCI’s valuation.

Why It Matters: SMCI has risen 26.12% on a year-to-date basis, but fallen 58.40% over a year. The short interest of the stock increased during the last reporting period, rising from 102.146 million to 102.964 million shares. About 22.95% of the company's publicly available shares were shorted as of the settlement date on Feb. 28, having an effective date of March 3.

According to the data, the short interest decreased by 0.8% from the previous settlement date of Feb. 14. The average daily trading volume during the latest period increased from 98.650 million to 152.200 million shares. The volume indicated that it would require approximately 1 day for the short sellers to cover their positions without significantly impacting the stock price.

Benzinga's Edge Rankings show a poor price trend in the longer term, but a stronger price trend in the short and medium term for SMCI. While the momentum ranking for SMCI is low, the value, fundamental growth, and quality rankings continue to be strong amid other pressures.

Its consensus price target was $369.25, with a ‘hold' rating, based on the 18 analysts tracked by Benzinga. The price targets ranged from a low of $35 to a high of $1300. The three latest ratings from Rosenblatt, Barclays, and Loop Capital averaged $63, implying a 64.06% upside.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose during premarket on Wednesday. The SPY advanced 0.14% to $561.80, and the QQQ also climbed 0.30% to $475.98, according to Benzinga Pro data.

On Tuesday, SPY dropped 1.08%, whereas QQQ declined 1.70%.

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