Super Micro Stock Falls Pre-Market As Delisting Fears Linger: Retail Stays At Sidelines

Shares of artificial intelligence (AI) server maker Super Micro Computer, Inc. ($SMCI) fell in Monday’s premarket session, potentially deepening the nearly 7% loss they witnessed in the truncated session last Friday.

In premarket trading, as of 7 a.m. ET, the stock was down 3.12% at $31.62. The stock has been on a volatile ride this year, moving in a range of $17.25-$122.90.

Super Micro stock started the year strong, buoyed by optimism surrounding the AI revolution. Its inclusion in the S&P 500 in March further boosted market sentiment.

A 10-for-1 stock split, announced earlier, took effect on Oct. 1.

However, the stock has faced pressure since then, following Ernst & Young’s resignation as auditor and delays in filing its annual report for fiscal 2024 and the September quarter’s results.

From over $17 in mid-November, the stock staged a recovery as the company appointed a new auditor and submitted a compliance plan to the Nasdaq.

After climbing past $39 in late-November, the stock has retreated yet again, as delisting concerns remain an overhang. 

S,MCI sentiment and message volume December 2, 2024, as of 7:00 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward the stock is ‘neutral’ (50/100), as the market awaits more clarity on the resolution of pending issues. 

Messages shared on Stocktwits platform are mixed, with some suggesting the stock will bounce back from THE oversold levels.

A user said the downside potential is about 50% from current levels if the stock is delisted, but it presents 300% upside potential at the minimum, if the lingering risks mitigate.

The stock is up about 15% so far this year.

For updates and corrections email newsroom[at]stocktwits[dot]com.<