Super Micro Computer Inc. (SMCI) stock soared 5.01% in Friday's pre-market session, continuing its volatile up-and-down movement observed in recent weeks. The surge comes as a special committee appointed by the company found no evidence of fraud or misconduct in its accounting practices.
The computer hardware maker had been facing scrutiny over its financial reporting and internal controls, which led to the resignation of its auditor Ernst & Young in October. E&Y had expressed concerns about Super Micro's governance, transparency, and internal controls, fueling investor worries about potential accounting irregularities.
However, the special committee, comprising members of Super Micro's board, forensic accounting experts, and legal counsel, completed its investigation and did not uncover any misconduct. While the committee noted deficiencies in governance procedures, its findings eased investor fears about possible financial restatements, triggering the stock's rally.