It's been a wild ride for Super Micro. You always hear about companies running into a scandal and never recovering but this is not the case for this story. In fact it's surprised me at how fast the bounce has been. For those who don't know...Super Micro was a favourite in the AI rush as they were seen as a popular server maker for large companies. This also feed into them being an artificial-intelligence play with investors. They saw huge demand for their large language model optimized AI systems which feature NVIDIA chips (the leading chipmaker). They even became a provider for half the servers for Elon's artificial intelligence start-up (xAI) and would also be supplying servers for Tesla's Gigafactory Texas.

The Super Drop

However, things really started to change when they ran into headwinds. There were worries when the company wasn't able to file audited results on time, and then news broke that their auditor quit which would lead to the stock being delisted if they couldn't regain listing compliance. The stock dropped as low as $17.25 USD.

The Super Rise

Since then a new auditor has come on board and the company has taken off again. The stock was up around 15% in trading Monday. It has now jumped up at a remarkable pace, 100%+ higher over the past seven trading days. There is still room to grow as well since the stock is still off recent highs and they are still a leader in AI servers.



I'm interested to see how this story plays out but I would predict that they might have some more good days ahead.