Super Micro Computer stock keeps rising after 11th-hour bid to avoid Nasdaq delisting

Shares of Super Micro Computer are set to see their second day of double-digit gains on Tuesday after the tech giant announced it has submitted a minutes-long bid to re-list on the Nasdaq stock exchange.

At the end of Monday’s press release, the company said it has hired BDO accounting as an independent auditor and now expects to be able to complete the financial documents required to remain trading. This follows the sudden resignation of its previous auditor, EY, which in October said it had lost confidence in Supermicro’s financial statements.

After EY’s resignation, Supermicro was responsible for certain filings with the Securities and Exchange Commission (SEC). It was warned by Nasdaq in September that it had 60 days to rectify the situation. Without a proper compliance program, the company ran the risk of being delisted from the exchange.

But on Monday, Supermicro expressed confidence it would avoid such a dire outcome, saying it now expects to complete the necessary filings “within the discretionary time available to Nasdaq staff.”

In the meantime, the company said it will continue to trade as Nasdaq reviews its compliance plan.

Following an August report from short-selling firm Hindenburg Research—which alleged accounting irregularities at Supermicro—shares in the company soared, falling from around $56 in late August to as low as $17.25 this month.

However, investors now seem to be betting that the worst is over.

In retail trading Tuesday, Supermicro (Nasdaq: SMCI ) stock rose more than 25 percent following news of its compliance program and a new auditing firm. The stock was up nearly 16% on Monday after Supermicro revealed to reporters that it would deliver the system ahead of the deadline.

“We are pleased to welcome BDO as Supermicro’s independent auditor,” said Charles Liang, president and CEO of Supermicro in a statement Monday. “BDO is a respected accounting firm with global expertise. This is an important next step in modernizing our financial statements, an effort we are pursuing with determination and urgency.”