SMCI Stock Rebounds 3% After a 10% Decline in Prior Session.

$Super Micro Computer (SMCI.US)$  shares rebounded 3.6% in premarket trading. SMCI experienced a significant stock decline on Tuesday, shedding 10.4% after announcing the termination of two critical loan agreements with major financial institutions.

The company disclosed in a Securities and Exchange Commission filing that it had prepaid and terminated loan agreements with Cathay Bank and Bank of America N.A. on Nov 20. This move comes amid ongoing challenges with Nasdaq listing requirements and delayed financial reporting.
SMCI, a prominent server manufacturer known for its AI system infrastructure supporting NVIDIA Corp.‘s chips, has been navigating a turbulent financial period. The company recently faced a potential delisting threat after failing to meet Nasdaq’s filing requirements.

The stock experienced a dramatic rally, surging 65% in a single week. Shares rose from $20.03 on Nov 18 to $33.15 on Nov. 22, attempting to recover from a six-month slump that previously erased nearly 60% of its value.

With a market capitalization of $17.39 billion, the company maintains a relatively low price-to-earnings ratio of 17.15.

Super Micro Computer has hired a new independent auditor and committed to filing its earnings report soon.