Super Micro Computer, Inc. (SMCI, Financial) shares surged 5% Thursday morning, riding a wave of renewed investor interest as anticipation builds ahead of the company's fiscal Q2 update on February 11. The AI-driven data center server manufacturer has been ramping up production for its latest high-performance solution, fueling optimism in the market.
It's no surprise that SMCI stock is highly volatile. It rose 17% after news said the company is about to reach full capacity for its next-generation AI data center servers. But investors remain wary as Hindenburg Research and other short sellers prompt questions about other corporate governance issues such as recent accusations the company engaged in financial manipulation.
SMCI is also under pressure, to the point of being given a February 25 deadline by Nasdaq for the filing of its annual accounts for its fiscal year ending June 30. Its upcoming update seems to come with a catch as missing the deadline could mean delisting, and therefore the stakes are higher.
However, despite these obstacles, there is still a demand for AI infrastructure because it is partnered with the NVIDIA Corporation (NVDA, Financial) and Advanced Micro Devices, Inc. (AMD, Financial). So investors will be very interested in SMCI's update next week to see if it can manage existing uncertainties and take advantage of the AI boom.
