Super Micro Stock Poised To Test $50 Resistance As Nasdaq Grants Extension: Skeptic Retail Stays On Sidelines

Super Micro Computer, Inc. ($SMCI) shares took off in Friday’s after-hours trading after the artificial intelligence server maker announced that the Nasdaq has granted it an extension to be up-to-date with the filing of its financial reports.

The San Jose, California-based company said it received a letter from Nasdaq granting its request for an exception to Nasdaq rule 5250(c)(1) through Feb. 25, 2025. The rule mandates that companies listed on the exchange should file all required periodic financial reports with the SEC on or before the filing deadline. 

Super Micro has delayed the filing its annual report on Form 10-K for the fiscal year ending June 30, 2024, and its quarterly report on Form 10-Q for the period ending Sept. 30, 2024. The predicament came amid the company's then-auditor Ernst & Young stepping down after flagging concerns regarding accounting practices and internal controls. 

The AI server maker has since then appointed a new auditor. Also, an independent committee appointed by the board's audit commit to probe the allegations recently gave a chit to the company.

Super Micro said its stock will remain on the exchange during the exception period and expects to file all the required reports by Feb. 25, 2025.

After settling Friday’s regular session up 6.78% at $43.93, Super Micro stock climbed 8.70% to $47.75 in the after-hours session.

SMCI sentiment and message volume December 8, 2024, as of 10:20 pm ET | Source: Stocktwits

Notwithstanding the stock rally, retail sentiment toward the stock was downbeat. On Stocktwits, the sentiment meter read 45/100, suggesting a ‘neutral’ mood, while message volume remained ‘low.’

A Stocktwits user deemed the extension allowed as a “very short period,” and called to short the stock.

Another predicted a big pre-market jump on Monday and then a rapid pullback toward the low-$40s from sell-the-news dumplings.

 But those bullish retailers have begun setting sights on the stock breaching $50.

Super Micro shares, which had a parabolic run through March this year, have come off the intraday peak of $122.90 (March 8). The stock is currently nestled between its 50-day simple moving (SMA) of $37.13 and 100-day SMA of $46.25. If it breaks above the psychological resistance of $50, it could look to backfill a gap from late August and go past the $54 mark.

Chart Courtesy of TradingView

Last week, Super Micro CEO Charles Liang announced that the company would support Elon Musk-founded xAI’s massive 10-fold expansion of the Colossus supercomputer in Memphis with over 1 million GPUs. The company would help by establishing local operations/production, validation, service and support, he added. 

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