Super Micro Dodges Nasdaq Delisting But Shares Sink 20% in Five Days

Feb 28 - Super Micro Computer (SMCI, Financial), a specialist in high-performance server and storage systems and a long-time partner with Nvidia (NVDA, Financial) and AMD (AMD, Financial), saw its shares decline sharply early Friday. The company filed its delayed financial accounts on time to avoid a Nasdaq delisting. Trading under the ticker SMCI, its stock fell about 2% to $42 on Friday morning after a 16% drop on Thursday, amid broader market pressure as the Nasdaq and S&P 500 slid following fresh tariff threats from President Donald Trump.

Goldman Sachs analyst Michael Ng outlined a combination of beneficial and substantial negative factors through his research document. The company's positive outlook regarding artificial intelligence server demand allows him to forecast improved financial performance and position Semiconductor as the premier AI hardware vendor. Ng stressed that Nanjing's margin problems could worsen while its reliance on limited customers intensified alongside stronger competitive threats from enterprise servers made by Dell and Cisco.

Analysts kept their "hold" recommendation for SMCI shares with a prospective price of $49.9 per share. The stock value has declined by 20% throughout the previous five trading periods while maintaining a 50% increase since the beginning of the month. The market shows doubt because international trade policy ambiguity continues to exist. Analysts advise vigilance.