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Super Micro (SMCI) surges after filing delayed reports in time with SEC. (00:22) Tesla’s (TSLA) market cap falls below $1 trillion as European sales drop. (01:35) China says Taiwan seeks to give away chip industry as ‘souvenir’ to US – report. (02:26)
This is an abridged transcript.
Super Micro Computer (NASDAQ:SMCI) is up 26% after the company filed its “delinquent” financial reports to the U.S. Securities and Exchange Commission just ahead of its deadline.
Shares for the storage, server and networking provider closed Tuesday 11.5% lower. There was uncertainty about whether it would file its audited annual report for fiscal 2024 and the first two quarters of fiscal 2025 by the February 25 deadline.
If not, it faced a possible delisting from Nasdaq.
In Super Micro’s 10-K filing, the company contends it does not agree with Ernst and Young’s resignation or its reasons for doing so. Concerns about the company’s financial statements cropped up in late August, when Hindenburg Research issued a report that it was short Super Micro’s shares. A day later, Super Micro said it was delaying its annual 10-K filing.
Super Micro works closely with companies such as Nvidia (NVDA), Advanced Micro Devices (AMD) and Intel (INTC) to develop products that are compatible with the latest generation of industry-standard technologies. It also creates liquid cooling systems for GPUs and CPUs in data centers.
Now an update to a story we first told you about on Tuesday on Wall Street Lunch with Kim Khan.
Tesla (NASDAQ:TSLA) tumbled on Tuesday, pushing its market cap below $1 trillion, for the first time since November 2024.
The EV maker’s stock fell 8.39%, closing at $302.80 on Tuesday, with the company’s market cap now at $948 billion.
The decline follows data from the European Automobile Manufacturers Association, which showed that Tesla’s sales in Europe dropped 45% in January.
Tesla’s shares have lost about 25% in value year-to-date, despite rising over 51% in the past year.
Investors have also raised concerns over Elon Musk’s alliance with President Donald Trump and his political involvement.
China has recently accused Taiwan of attempting to relinquish its semiconductor industry to the U.S. to gain political leverage and support from Washington.
This accusation was made by Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, at a news conference in Beijing.
Reuters reported that Zhu Fenglian claimed that Taiwan’s ruling Democratic Progressive Party is using the semiconductor industry to seek independence by relying on foreign countries, even offering it as a “souvenir” to the U.S.
The accusations come amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker and a major supplier to companies like Apple (AAPL) and Nvidia (NVDA), has been in talks for a stake in Intel (INTC).
The reports add that neither TSMC (NYSE:TSM) nor Intel (INTC) have confirmed these reports, and Taiwan’s government states it has not received any information about an overseas investment application from TSMC (NYSE:TSM).
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Notable investor events include 3M Company’s (MMM) Investor Day, Littelfuse’s (LFUS), Investor Day, Deere & Company’s (DE) annual meeting with several shareholder proposals going to a vote, International Money Express’ (IMXI) Investor Day, and Diebold Nixdorf’s (DBD) Investor Day.
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All day – Shareholders of Charter (CHTR) and Liberty Broadband (LBRDA) will vote on their planned merger.
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10:00 a.m. Amazon (AMZN) will hold a product event. The tech giant is expected to announce a major artificial intelligence upgrade for its voice assistant Alexa. There is also speculation that a new smart home product could be introduced.
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5:00 p.m. Nvidia (NVDA) will hold its earnings conference call. Options trading implies a 7% share price swing after the report is released. Notably, over the last two years, Nvidia has seen its two biggest earnings day moves following the February release of the Q4 results. Fabrinet (FN) is the supplier that has had the closest trading correlation to Nvidia over the last three years, moving in tandem with the chip giant 88% of the time.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.3% at $68/barrel. Bitcoin is up 1% at $89,000.
In the world markets, the FTSE 100 is up 0.6% and the DAX is up 1.1%. The market in India is closed for a holiday.
The biggest movers for the day premarket: Workday (NASDAQ:WDAY) shares jumped over 12% after the back-office software provider posted strong Q4 results and guidance, with revenue rising 15% and a 12-month subscription backlog of $7.63B, up 15.2% Y/Y.
On today’s economic calendar:
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10:00 am New Home Sales
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11:00 am Survey of Business Uncertainty
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12:00 pm Atlanta Federal Reserve Bank President Raphael Bostic will participate in a conversation on the economic outlook and housing before the Urban Land Institute’s annual Housing Opportunity Conference.