Super Micro Computer Inc. (NASDAQ: SMCI), a key player in artificial intelligence (AI) server solutions, has been navigating turbulent waters in recent months.
The company has been grappling with the risk of delisting from Nasdaq due to delayed financial filings, a challenge temporarily alleviated by an extension granted by Nasdaq on December 6, 2024.
This extension provides Super Micro until February 25, 2025, to submit its overdue reports, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, its Quarterly Report on Form 10-Q, and any other required filings, while maintaining its listing on the Nasdaq Global Select Market.
The announcement brought some relief to investors, as the stock climbed 7% in after-hours trading. However, the risk of delisting continues to loom, particularly given the company’s history of being delisted in 2018 following an SEC investigation into its revenue recognition practices.
It took nearly two years for Super Micro to be relisted, eventually returning to the Nasdaq in January 2020 after settling with the SEC.
As the company works to meet regulatory deadlines, investor attention has turned to its shareholder structure, which reveals significant confidence from both individual and institutional stakeholders.
SMCI’s top individual shareholders
Founder and CEO Charles Liang leads the roster of individual shareholders with 67.4 million shares valued at $2.93 billion, reflecting a 131.49% increase in holdings over the past two months, driven by a 911.09% surge.
Independent Director Sherman Tuan follows, holding 252,626 shares worth $11 million, while Senior Vice President and outgoing CFO David E. Weigand owns 148,491 shares valued at $6.4 million, marking a 0.9% increase over the past month
SMCI’s top institutional investors
Institutional investors also hold significant stakes, collectively owning 301.29 million shares across 1,131 institutional holders.
Vanguard Group Inc. leads with 61.47 million shares valued at $2.7 billion, reflecting a 3.116% increase in holdings. BlackRock (NYSE: BLK) holds the second-largest position with 41.29 million shares worth $1.81 billion, followed by State Street Corp., which owns 21.38 million shares valued at $939.29 million.
Morgan Stanley has shown aggressive confidence, adding 7.25 million shares to bring its total to 15.31 million shares valued at $672.59 million, an 89.829% increase.
Notably, International Assets Investment Management, LLC made a massive change, adding 9.15 million shares to reach a total of 9.16 million shares, representing a staggering 63,634.075% increase.
This ownership activity highlights both steady and aggressive moves by top institutions, reflecting diverse investment strategies.
Growth potential amid volatility
Despite its regulatory troubles, Super Micro continues to show strong growth potential, driven by its status as a key vendor for Nvidia (NASDAQ: NVDA) based AI server clusters.
The company projects a 67% increase in revenue, targeting approximately $25 billion for fiscal 2025. However, this optimism has been tempered by market volatility.
The stock has seen dramatic swings, rising from $8 at the start of 2023 to a peak of $116 in March 2024—a 14.5-fold increase—before retreating 63% to stabilize at $43.93 at press time.
While investor confidence appears resilient, Super Micro’s ability to meet its February 2025 deadline for regulatory compliance will be pivotal.
The outcome will determine whether the company can maintain its market position and capitalize on its role in the rapidly expanding AI sector.
Featured image via Shutterstock
Source: https://finbold.com/these-are-smcis-top-shareholders-as-of-december-2024/