Super Micro Computer Inc. SMCI is walking a tightrope this week, with its spot on the Nasdaq 100 Index hanging in the balance.
As the index reshuffles its lineup every December, the San Jose, California-based firm finds itself on the potential chopping block, alongside other underperforming stocks like Moderna Inc MRNA and Biogen Inc BIIB.
Super Micro Computer benefitted from the surging demand for artificial intelligence infrastructure. At one point, it boasted a market cap of $67 billion. But a recent auditing scandal caused its market cap to plummet; it’s currently hovering at just below $20.4 billion.
Ernst & Young flagged governance issues, sparking investor concerns, though a special committee later concluded these claims lacked sufficient evidence.
Super Micro Computer CEO Charles Liang expressed confidence at the Reuters NEXT conference, assuring investors that the company will meet its financial filing deadlines and remain on track for a February resolution.
Liang emphasized Super Micro’s robust relationships with major clients like xAI and Nvidia Corp NVDA, which could help stabilize its trajectory.
Super Micro Computer Stock Chart Raises Questions
The technical charts, however, tell a mixed story.
Chart created using Benzinga Pro
Super Micro Computer stock, at $37.95, is trading below its eight-day simple moving average (SMA) of $41.47, signaling short-term selling pressure. Yet, its 20-day SMA of $33.38 and 50-day SMA of $37.10 suggest medium-term strength, offering a glimmer of hope.
Still, the long-term picture looks bleak with a 200-day SMA at $67.21—a stark reminder of the stock's fall from grace.
JPMorgan's Take
Despite market skepticism, JPMorgan sees stability in Super Micro's order book and customer base. The firm highlighted "robust" orders and no signs of significant customer churn.
With Nvidia's Blackwell product line gearing up for a major ramp in late fiscal 2025, the company’s role in AI infrastructure could prove pivotal.
The Verdict
While Super Micro clings to the hope of staying on the Nasdaq 100, Friday’s decision will likely hinge on its market value relative to stronger contenders like Palantir Technologies Inc PLTR and MicroStrategy Inc MSTR. The clock is ticking for SMCI to prove it still belongs among tech’s elite.
Stay tuned — Friday the 13th could mark a turning point for this embattled AI infrastructure pioneer.
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