Super Micro Computer (SMCI) has staged a remarkable comeback, with its stock soaring nearly 8% on Wednesday, extending a weeklong rally that has fully erased the losses triggered by last summer’s Hindenburg Research report accusing the company of accounting violations and export control breaches.
On Tuesday, shares jumped over 16%, reaching their highest level since August 26, 2024—the day before Hindenburg’s explosive allegations surfaced. The short-selling firm had claimed that Super Micro engaged in accounting “manipulation,” failed to disclose supplier relationships, and violated U.S. export laws.
AI Boom and Strong Business Outlook Fuel Recovery
Super Micro, a leading server manufacturer for AI-driven data centers, has benefited from soaring demand for Nvidia (NVDA) chips. The company has a major contract with Elon Musk’s xAI data center in Tennessee, reinforcing its role in the AI revolution. Year to date, Super Micro’s stock is up 83%, making it the best-performing stock in the S&P 500. 
Investor confidence rebounded after the company’s business update last Wednesday, where it outlined ambitious long-term growth targets. The Hindenburg accusations had previously sent shares tumbling in late 2024, leading to a U.S. Department of Justice investigation, delayed SEC filings, and the resignation of Ernst & Young as its auditor. The accounting firm stated it was “unwilling to be associated” with Super Micro’s financial reports.
Denials, New Accountant, and a CFO Search
Super Micro has denied all allegations, and an independent review in December found no evidence of misconduct. The company has since hired a new auditor and is actively searching for a new CFO.
Despite its rebound, Super Micro’s stock remains well below its record closing price of $114 in March 2024, just before it was added to the S&P 500. However, the company is determined to avoid delisting, stating it is on track to submit its delayed SEC filings by the extended February 25 deadline set by Nasdaq.
Bold Revenue Forecasts and AI Expansion
CEO Charles Liang presented an ambitious financial outlook, stating that Super Micro has the “potential to reach $40 billion in revenue by fiscal year 2026”—far exceeding the $30 billion forecasted by analysts.
Further fueling optimism, Super Micro announced that its server systems using Nvidia’s Blackwell AI chips are now in full production, positioning the company as a critical player in the AI-driven data center market.
As the company works to regain investor trust and navigate regulatory scrutiny, Super Micro’s resurgence underscores Wall Street’s confidence in the AI boom—despite past controversies.
