Supermicro’s (NASDAQ:SMCI) stock fell nearly 8% as investors prepare for the upcoming financial updates. The AI server company is set to submit its delayed 10-K and 10-Q reports on February 25, 2025, addressing previous investor concerns.

Reasons Investors Watch Supermicro Closely

Supermicro is scheduled to file its Annual Report (10-K) for FY 2024 and Quarterly Reports (10-Q) for Q3 and Q4. Delays were caused by governance issues raised in 2024, leading to auditor changes.

Additionally, the company projects a potential $40 billion in revenue for FY 2026, indicating a growth outlook of up to 70% compared to 2025. CEO Charles Liang remarked this forecast might be conservative, tied closely to NVIDIA’s AI server demand.

Short sellers have targeted Supermicro due to concerns raised by Hindenburg Research regarding accounting practices. However, recent stock gains indicate a trend of short covering.

Supermicro’s fate is intricately linked to NVIDIA’s earnings report set for February 26.

Investor Outlook and Key Metrics

Investors seek assurance regarding governance resolutions and that the $40 billion revenue target is backed by strong market demand.

If NVIDIA’s results show a positive outlook, Supermicro could see a favorable impact on its stock price.

In summary, Supermicro shows potential for volatility but presents opportunities for considerable upside amidst ongoing market risks.