Why Super Micro Computer, Inc. (SMCI) Is Skyrocketing?

We recently published a list of 10 Stocks Jump on Impressive Earnings, Bullish Outlooks. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other stocks that have surged on impressive earnings and bullish outlooks.

The stock market ended firmer on Tuesday, with all of Wall Street’s main indices finishing in the green territory amid news that President Donald Trump temporarily delayed the imposition of tariffs against Canada and Mexico.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

On Tuesday, 10 companies under mixed sectors mirrored the broader market rally, fueled by impressive earnings results and optimistic business outlooks, among others. This article details the reasons behind the top gainers’ impressive performance.

To come up with Tuesday’s top gainers, we only considered those with $2 billion in market capitalization and $5 million in daily trading volume.

Why Super Micro (SMCI) is Skyrocketing?

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Super Micro Computer, Inc. (NASDAQ:SMCI)

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) jumped 8.6 percent on Tuesday to finish at $29.16 each as investors repositioned their portfolios ahead of its second quarter fiscal 2025 business update scheduled for February 11, 2025, after market close.

Investors will be watching out for two cues in the call meeting: the company’s annual report for the 12 months ending June 2024 which was yet to be filed with the Securities and Exchange Commission, and whether it would be able to submit all delayed filings by February 25—a vital factor in keeping its position as a publicly listed company.

Nasdaq allowed Super Micro (NASDAQ:SMCI) to be delinquent over the past few months amid allegations from short seller Hindenburg Research that it found evidence of undisclosed related party transactions, and a failure to abide by export controls, among other issues.

In 2018, the company was forcefully removed from the Exchange after failing to file financial statements and then returned in 2020. In the same year, it was fined by the SEC for “widespread accounting violations.”

Overall, SMCI ranks 7th on our list of stocks that have surged on impressive earnings and bullish outlooks. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.