By Mackenzie Tatananni

Shares of Super Micro Computer extended the previous day's gains in premarket trading Wednesday following a flood of good news.

The stock surged 18% to $45.88. Futures tracking the S&P 500 and Nasdaq Composite, which were up 0.1% and 0.3%, respectively.

Super Micro's steep ascent began Tuesday after Raymond James analysts initiated coverage at Outperform with a $41 price target. The firm dubbed the server maker "a market leader in AI-optimized infrastructure" and lauded its ability to offer "competitive pricing" relative to peers.

Also on Tuesday, Super Micro said it had shipped a number of high-density servers powered by Advanced Micro Devices' EPYC 4005 series processors, and separately announced a $20 billion deal with Saudi Arabian data center company DataVolt.

The multi-year partnership is meant to accelerate the delivery of GPU platforms and rack systems for DataVolt's hyperscale campuses, the companies said.

Shares received an additional boost along with the broader market after the U.S. and China agreed to temporarily lower tariffs. Super Micro ended Tuesday's session up 16% at $38.89.

Regardless of the sharp gains, the stock remains down 53% from its 52-week high and off 62% from its record high of $118.81, which it reached in March 2024.

Shares peaked in February after the server maker narrowly avoided delisting from the Nasdaq by filing a string of delayed financial reports with the U.S. Securities and Exchange Commission.

Despite the company's proclamation that the matter was "closed," auditor BDO expressed an adverse opinion, stating that Super Micro "did not maintain, in all material respects, effective internal control over financial reporting as of June 30, 2024."

An adverse opinion indicates that a company's financial statements are misrepresented or inaccurate. While months have passed since the debacle, Raymond James analysts argued that the company's "reputational risk" was dampening its valuation.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 14, 2025 08:31 ET (12:31 GMT)

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