Super Micro Computer Inc. said on Monday it has appointed BDO as its new independent auditor and also filed a plan with Nasdaq to bring itself back into compliance with the rules of the exchange. The news came after a nearly weeklong delay in the firm’s report to the U.S. The Securities and Exchange Commission about its year-end closing for 2024. After-hours on Monday, the stock of Super Micro climbed 37%, continuing a rally begun earlier in the day.

The chief executive officer of the company, Charles Liang, explained that bringing its financial statements up to date “with both diligence and urgency” is so vital for this concern. . BDO would instead of Ernst & Young, which recently took over Deloitte & Touche as Super Micro’s auditor in March 2023 but had earlier resigned in October.

Super Micro has faced filing process issues, failing to timely file the annual report on June 30, 2024, and the quarterly report for September 30, 2024. It believes it will be able to submit those filings in due course.

Nasdaq has informed Super Micro that it will remain listed while the exchange reviews the company’s compliance plan.

A high-flyer in the stock market, Super Micro’s shares rose exponentially from the start of 2022 to the peak at $118.81 in March 2024, bestowing the company with a market capitalization almost $70 billion. Compliance issues, however, have later wreaked havoc on the firm’s shares as its market value fell to a staggering $12.6 billion as Monday closed. This came after a report from short-seller Hindenburg Research raised concerns that the DoJ was investigating alleged accounting irregularities by the company.

Despite these challenges, Super Micro remains among the dominant companies in the server market, highly benefiting from the significant demand for artificial intelligence (AI) products. The company’s close association with Nvidia has made it the leading supplier of AI-driven hardware. Last fiscal year, Super Micro’s sales shot up by over 100 per cent to $15 billion. It is also set to sell goods carrying Nvidia’s new Blackwell AI chip, which will further solidify its foothold in the already fiercely competitive market, where it is competing with firms such as Dell and Hewlett Packard Enterprise.

Such has been Super Micro’s resilience and growth in the AI sector, given the issues surrounding the financial reporting that faces it.