SUPER MICRO COMPUTER INC stock is taking a breather on Tuesday after a remarkable comeback that has brought shares almost back to where they started before the roller-coaster ride started in late October.
When Ernst & Young resigned, citing unwillingness to be associated with Super Micro's financial statement, shares of the maker of artificial-intelligence servers tumbled 32% on the day, and 53% in a week. It hit a low point on Nov. 14 of $18.
The shares, which trade under the ticker SMCI, are down 8% in early trading Tuesday. On Monday, the stock reached an intraday high of $48 before paring gains and closing up 0.5%.
There are several reasons why the stock managed to stage such an impressive comeback: The company said a board-appointed committee found no evidence of misconduct; it appointed BDO as the new auditor; and it filed a plan to stay a Nasdaq-listed company. All of which had a positive effect on its share price.
While SMCI stock is getting closer to where it was before its recent troubles began, it's still far off its year high of $109 in March -- indicating investors are still not feeling too confident in Super Micro. The company has yet to answer some pressing issues after its auditor's surprise exit in October.
Separately, chip maker Taiwan Semiconductor Manufacturing, or TSMC, also announced on Monday it had secured an extension with Nasdaq to file its delayed annual and quarterly reports, avoiding the immediate threat of delisting from the index.
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