Super Micro Computer, Inc. (SMCI)

The past six months have seen significant volatility and events impacting SMCI's stock price. SMCI's stock experienced a substantial rally in the first half of 2024, climbing 188%, driven by strong demand for AI servers and its role in AI data centers, and was added to the S&P 500 in March 2024. A short report from Hindenburg Research in late August 2024 alleged accounting problems, causing the stock to tumble 22% in four trading sessions, followed by delays in filing its 10-K annual report and a 10-Q quarterly report, and the departure of its auditor, EY. Supermicro hired a new auditor and filed its financial statements within the extension deadline, regaining compliance with Nasdaq listing rules by February 25, 2025. In November 2024, Supermicro's preliminary earnings report for fiscal Q1 FY2025 showed net sales below prior guidance, and in May 2025, the company released preliminary results for its March quarter (Q3 FY25) that significantly underperformed expectations. In June 2025, SMCI announced a $2 billion convertible note offering due in 2030, which spooked investors due to dilution concerns. As of June 27, 2025, the share price was $47.58, representing a decline of 41.43% since July 1, 2024.

Demand for Supermicro's products is heavily influenced by broader market trends in technology, particularly in AI and data centers. Strong AI-driven demand for high-performance computing solutions, especially AI servers, has been a major driver for Supermicro's revenue growth. There is potential for seasonal softness or delays, as indicated by the company's preliminary Q1 FY2025 earnings report and Q3 FY25 revenue miss, which was attributed to delayed customer platform decisions. Supermicro's sustained focus on enhancing its server and storage product portfolio and expanding global manufacturing capacity is expected to continue driving top-line performance.

Super Micro Computer, Inc., commonly known as Supermicro, specializes in providing high-performance, high-efficiency server technology and green computing solutions. The company's business involves the distribution and manufacture of information technology solutions and other computer products. Supermicro operates within the Electronic Technology sector, specifically in the Computer Processing Hardware industry, and is categorized under Technology Hardware, Storage & Peripherals. Supermicro offers a comprehensive portfolio of IT solutions, including servers, storage systems, workstations, components and subsystems, networking devices, software, and cooling solutions. Supermicro serves diverse markets, including enterprise data centers, cloud computing, artificial intelligence (AI), high-performance computing (HPC), 5G, and edge computing.

Supermicro is a global company with a significant international presence. Its headquarters are in San Jose, California, U.S. The company has manufacturing operations and global logistics, operations, and service centers in Silicon Valley (USA), the Netherlands (Europe), and Taiwan at its Science and Technology Park. Supermicro also has operations in South Korea, China, and Japan. More than half of the company's revenue is generated in the United States, with the remainder coming from Europe, Asia, and other regions.

Supermicro's brand reputation was impacted by accounting allegations and filing delays. Hindenburg Research alleged accounting red flags, undisclosed related-party transactions, and sanctions/export control failures. The company faced scrutiny and a threat of delisting from Nasdaq due to delays in filing its annual and quarterly reports and the departure of its auditor. Supermicro successfully found a new auditor and filed its financials, regaining Nasdaq compliance. A special committee found no evidence of fraud, which helped restore investor confidence. Strategic partnerships and product innovations positively contribute to its reputation as a leader in AI and green computing solutions.

Super Micro Computer, Inc. is heavily dominated by institutional owners, holding over 70% of the shares. As of June 27, 2025, there are 1317 institutional owners and shareholders. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Susquehanna International Group, Llp., State Street Corp., and Geode Capital Management, Llc. Charles Liang, the company's chairman, president, and CEO, is the second-largest shareholder.