Super Micro Computer Shares Decline Amid Nasdaq 100 Index Changes

Super Micro Computer, Inc. (SMCI) shares are seeing a decline in trading this Monday. This follows the announcement that the company will be removed from the Nasdaq 100 Index later this month. Here’s what investors need to understand.

Index Changes: Super Micro is among three companies set to exit the Nasdaq 100 Index on December 23, as part of the index’s annual rebalancing. Alongside Super Micro, Illumina, Inc. (ILMN) and Moderna, Inc. (MRNA) are also scheduled to be removed.

The upcoming changes will take effect before the market opens on December 23. In contrast, the Nasdaq is expected to add several new companies to the index, specifically Palantir Technologies Inc. (PLTR), MicroStrategy Inc. (MSTR), and Axon Enterprise, Inc. (AXON).

Financial Delays: Super Micro has been dealing with significant delays in filing its earnings reports for the 2024 fiscal year, as well as the first quarter of the 2025 fiscal year. The company cited various challenges for these delays. Notably, they have recently needed to secure a new auditor since Ernst & Young, their previous auditor, resigned due to governance control issues. There has also been a necessity to thoroughly review their internal control systems.

Recent steps have been taken by Super Micro to appoint BDO USA as their new independent auditor. Additionally, a special committee’s review within the company reportedly found no evidence of misconduct.

Moreover, Super Micro is actively collaborating with Evercore to enhance its capital position. The company is exploring various options, including a potential private investment in public equity.

Current Stock Performance: At the time of this report, shares of Super Micro are trading 6.75% lower, listed at $33.98, as per data from market trackers.

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