Super Micro Computer stock skyrocketed on Monday after the company released the results of an investigation into its accounts by a board-appointed independent committee.
Super Micro makes servers used for AI applications.
The server maker had been facing delisting for failing to file its financial reports on time. During the delay, its auditor Ernst & Young resigned, citing an unwillingness “to be associated with the financial statements prepared by management,” Super Micro said in a securities filing in late October.
The company said Monday that the committee’s probe into the circumstances behind the resignation found no evidence of fraud or misconduct.
After rising more than 35% in intraday trading Monday, Super Micro shares closed up 29% to $42.00. That’s despite a mixed performance in the broader market—the Dow Jones Industrial Average closed down 0.3%, while the S&P 500 rose 0.2%.
Super Micro is still 4% lower than it was three months ago, but it is up 61% in the past month.
The company also said it would immediately begin a search for a new chief financial officer. David Weigand, the current CFO, will continue to serve in that position until his successor has been appointed.
Super Micro has been swept up in the frenzy around artificial intelligence, and the stock has had big swings, moving up or down by 10% or more in 10 of November’s 19 trading days.
Analysts have started to weigh in on the announcement. “We believe these are key steps in the right direction,” writes Needham analyst N. Quinn Bolton. “Until the company is current with its financial filings, we maintain our Suspended Rating.”
Independent auditor BDO is reviewing the company’s financials following Ernst & Young’s resignation. The server maker has said it expects to be able to file accounts now and won’t have to revise past ones. Still, risks remain: The company has yet to file its annual report or results from the most recent quarter.
Separately, the shares were attractive to the world’s biggest hedge fund. Bridgewater Associates added to its holdings of Super Micro along with Palantir Technologies and Advanced Micro Devices in the third quarter, according to a filing with the Securities and Exchange Commission. It sold Nvidia shares in the period.
Super Micro fell nearly 7% in Friday’s shortened trading session, making it the worst-performing stock in the S&P 500 that day.