Super Micro Computer just pulled off one of the greatest "nothing to see here" moves in recent market history. After months of sweating out missed financial reports, Ernst & Young “noping” the F’out over “governance and transparency” concerns, and a looming Nasdaq delisting—the company finally dropped its overdue filings. The crazy part? Wall Street threw them a friggin’ party instead of punishing them. 

(Source: Giphy) 

In short, shares of Super Micro exploded 23% in premarket trading, presumably because investors are just relieved that the company may not be as much of a dirtbag fraud as Hindenburg claimed it to be. ICYMI, Super Micro has been flirting with disaster, missing its August 2024 deadline to file its annual report, watching its stock sink 24% in a week, while getting the honorable attention of the DOJ  (not in a good way). 

But instead of dropping a bombshell, the company’s filings landed with a collective “meh”. No major fraud, no CEO fleeing to a non-extradition country—just some "material weaknesses in financial reporting" and a promise to fix things eventually, probably, maybe. Meanwhile, CEO Charles Liang, did one of the smartest things a man in his horrific position could do: throw around a $40 billion revenue “forecast” on the backs of Nvidia’s Blackwell server ramp-up. 

(Source: Morning Star) 

Which makes this a 70% projected growth—meaning, whether that number is optimistic, delusional, or outright fraudulent is irrelevant—because in this market, it’s not about reality, it’s about the narrative. And right now, the narrative is AI servers are the second coming of Christ, and Super Micro is about to print money like the Fed in 2020.

So yeah, the bottom line is that in Super Micro’s case, a messy win is still a win. The company miraculously escaped the Nasdaq guillotine, reassured investors that they’re not cooking the books (too much), and threw out a massive growth forecast just for good measure. Of course, management did admit that its financial controls are still somewhat of a wreck—and yeah, there’s still “ongoing reputational harm” caused from Hindenburg’s diss track of 2024. But, but, but, in the casino of the stock market, nobody gives a rats a$$ about the past when there’s a growth narrative to chase.

Meaning, if Nvidia’s earnings confirm the AI server boom is still alive, expect this stock to keep running. If not? Well, let’s just say Wall Street’s patience for financial-reporting trainwrecks is not unlimited. 

Now obviously, do what you will with this information and do your own due diligence to see if there’s room for you on this hype train. But regardless, place your bets accordingly, friends. As I mentioned yesterday in our Final Tally issue: if Nvidia’s earnings don’t absolutely crush the ungodly level of expectations Wall Street has set—we’re in for a market wide bloodbath with Super Micro included… sigh.

As always, stay safe and stay frosty, friends! Until next time… 

 P.S. My buddy Jared is sharp as hell—probably one of the smartest guys I know. But when it comes to investing? An absolute clown. Why? Because he doesn’t grasp the one thing that separates winners from losers in the market: information. And not just any information—I’m talking about the kind of intel that Wall Street hoards like the FBI hoards Hunter Biden's laptop—because the second retail traders get their hands on it, their edge starts to disappear.

Moral of the story here? Don’t be a Jared. Get access to the real market-moving data, the stuff hidden behind paywalls and institutional gatekeeping by joining Stocks.News premium. At the end of the day, the market isn’t playing fair—so why should you? 

Stocks.News does not hold positions in companies mentioned in the article.