Super Micro Computer CEO Charles Liang at the Computex conference in Taipei, Taiwan, on June 5, 2024.
Annabelle Cheh | Bloomberg | Getty Images
Super micro computer It joined the Nasdaq 100 in July. Five months later, it was released, and the stock fell 8% on the news.
Super Micro will be removed from the index, which consists of the 100 largest non-financial stocks on the Nasdaq exchange and is the basis of the index, Nasdaq said late Friday. Invesco QQQ Trust ETFs, one of the most active ETFs.
The announcement is the latest in a year-long roller coaster for Super Micro, whose shares rose to a record high of $118.81 in March, as demand surged for the company's servers packed with artificial intelligence processors. The company's market capitalization has reached more than $70 billion, high enough to merit inclusion in the S&P 500 index.
SuperMicro is now worth about $20 billion, about a quarter the size of the average market capitalization of companies in the Nasdaq 100. Nasdaq will also divest Illumina and Moderna From the collection as of December 23.
The revision will make room for additions Exxon Corporation and Palantir Technologiesbesides Accurate strategya company whose value is tied to its multi-billion dollar Bitcoin purchases. MicroStrategy shares have gained more than 500% so far this year and were flat in Monday trading.
For Super Micro, the story began to turn in August, when the company said it would not file its annual report with the Securities and Exchange Commission on time. Subsequently, Hindenburg Research, a popular short seller, uncovered 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 its shares down 33%. An independent special committee of the board evaluated Ernst & Young's concerns and found no misconduct after a three-month investigation. The report recommended that the company replace its financial director. The company said in November that BDO was its new auditor.
Super Micro was at risk of being delisted from the Nasdaq completely for a second time due to delayed financial reports, but two weeks ago it received an extension until February 2025.
In a preliminary earnings report, the company said third-quarter revenue rose 181% year over year, which was lower than expected.
“Competition is strong, but I think we're in a good position,” CEO Charles Liang said during a November conference call with analysts. Competitors include Dell and HPE.
Watch: Super Micro appoints BDO as independent auditor
