Why Artificial Intellingence (AI) Stock Super Micro Computer Popped This Week
Super Micro Computer (NASDAQ: SMCI) stock has gotten crushed over the last six months. Shares of the provider of server, storage, and coolant systems for the massive data center buildout have been cut in half during that time.
But the stock is still up by over 60% year to date from high demand as large technology companies work to quickly expand artificial intelligence (AI) computing capacity. This week, shares began to recover from the recent slump and were higher by about 13% as of Thursday afternoon, according to data provided by S&P Global Market Intelligence.
After surging earlier in 2024, Supermicro shares began to sink after a report from short-seller Hindenburg Research claimed it found "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." Hindenburg noted it had a short position in the stock. Shares plummeted further after Supermicro announced it was delaying the 10-K annual report filing for its fiscal 2024 year ended June 30.
Source Fool.com
