Super Micro Computer, Inc. (NASDAQ:SMCI) Update

Super Micro Computer, Inc. (NASDAQ:SMCI) faced a 15% drop in pre-open trading on Monday following its removal from the Nasdaq-100 Index. This announcement was made public on Friday, and the changes will take effect before the market opens on December 23, 2024.

The annual reconstitution of the Nasdaq-100 Index®, managed by Nasdaq, will introduce Palantir Technologies Inc (NASDAQ:PLTR), MicroStrategy Incorporated, and Axon Enterprise (NASDAQ:AXON) to the index, while Illumina (NASDAQ:ILMN), Super Micro Computer, Inc., and Moderna (NASDAQ:MRNA) will be removed.

Additionally, Bloomberg News reported that Super Micro Computer Inc. is working with Evercore Inc. to assist in capital raising efforts. The server manufacturer is currently exploring options for equity and debt financing to enhance its financial stability. This comes as the company confronts various challenges, including a possible delisting due to the late submission of its annual financial report. Super Micro’s stock value has dropped 69% since its peak in March, compounded by issues with its former auditor, Ernst & Young LLP, and a U.S. Department of Justice investigation triggered by Hindenburg Research allegations.

Super Micro has yet to file its financial report for the fiscal year ending June 30 or its quarterly report for the period ending September 30. Recently, the company announced that it received an extension from Nasdaq to file these documents by February 25. In light of Ernst & Young LLP's resignation, attributed to governance and transparency concerns, Super Micro has appointed BDO as its new auditor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.