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Super Micro Computer CEO Charles Liang appears at the Computex conference in Taipei, Taiwan, on June 5, 2024.
Annabelle Chih | Bloomberg | fake images
super microcomputer joined the Nasdaq 100 in July. Five months later, it came to light and the shares fell 7% after the news.
Nasdaq said late Friday that Super Micro is being removed from indexwhich is made up of the top 100 non-financial stocks on the Nasdaq and is the basis of the Invesco QQQ Trust exchange-traded fund, one of the most actively traded ETFs.
The announcement is the latest in a rollercoaster year for Super Micro, which soared to a record $118.81 in March as demand soared for the company’s servers packed with AI processors. The company’s market capitalization reached more than $70 billion, high enough to merit inclusion in the S&P 500.
Super Micro is now worth about $20 billion, about a quarter the size of the average market capitalization of companies on the Nasdaq 100. Nasdaq will also eliminate glow up and Modern of the group, starting December 23.
The revision will leave room for additions to Axon Company and Palantir Technologiesas well as Microstrategya company whose value is tied to its billions of dollars in bitcoin purchases. MicroStrategy shares have gained nearly 600% so far this year and were up 4% on Monday.
For Super Micro, the story began to change in August, when the company said it would not file its annual report with the SEC on time. Prominent short seller Hindenburg Research then revealed a short position in the company and said in a report that it had identified “new evidence of accounting manipulation.”
In October, Ernst & Young resigned as Super Micro’s auditor, sending the stock down 33%. An independent special committee of the board evaluated Ernst & Young’s concerns and found no wrongdoing after a three-month investigation. The report recommended that the company replace its chief financial officer. The company said in November that BDO was its new auditor.
Super Micro was at risk of being delisted from the Nasdaq for a second time due to delayed financial reporting, but two weeks ago it received an extension until February 2025.
In a preliminary earnings report, the company said third-quarter revenue increased 181% year over year, missing consensus.
“Competition is strong, but I think we are in a good position,” CEO Charlies Liang said during a conference call with analysts in November. Rivals include Dell and HPE.
LOOK: Super Micro appoints BDO as independent auditor
