On Tuesday, the stock price of server manufacturers $Super Micro Computer (SMCI.US)$ soared, and the news that they planned to stay on the nasdaq exchange seemed to reassure investors' sentiment.

According to dow jones market data, SMCI's stock price rose by 31% to $28.27, poised to achieve the largest single-day percentage gain since February 22. The server manufacturer was the best-performing stock in the s&p 500 index and nasdaq 100 index on Tuesday.

SMCI stated in a statement on Monday evening that it has hired BDO USA as its independent auditor and submitted a plan to nasdaq for an extension to regain compliance with the exchange's listing requirements. When contacted by barron's, nasdaq declined to comment.

SMCI noted that it should now be able to complete its annual report (10-K) for the fiscal year ending June 30 and its quarterly report (10-Q) for the quarter ending September 30. Failure to timely submit these two reports is what put the company at risk of being delisted from nasdaq.

"Finding an auditor is clearly a positive development. This is a key question mark," said Wedbush analyst Matt Bryson in an interview with barron's. He rated SMCI as "neutral," with a target price of $24.

Bryson added that even with a new auditor, the company still faces risks. He pointed out that BDO might find the need to restate the company’s financial data, which could lead to greater delays and hinder SMCI from meeting the submission requirements to comply with nasdaq's deadlines.

The issues SMCI faces are not limited to delayed submissions. The short-selling institution Hindenburg attacked the company at the end of August, and investors are also concerned that its profit margins are deteriorating.

At that time, SMCI stated that it would not comment on "rumors and speculation." On Tuesday, the company also did not respond to Barron's request for comment.

Editor/rice