Super Micro pays off, ends loan agreements with BofA, Cathay Bank

Super Micro Computer (NASDAQ:SMCI) edged slightly higher during early market action Wednesday after it was revealed the company had prepaid loan agreements with two lending firms.

“On November 20, 2024, Super Micro Computer, Inc., prepaid in full and terminated its obligations under each of the Loan Agreement, by and among the Company and Cathay Bank, as amended or otherwise modified, and the Loan and Security Agreement with Bank of America N.A., by and among the Company, the lenders party thereto, and Bank of America N.A., as administrative agent, as amended or otherwise modified,” according to a Form 8-K filing dated November 26.

Super Micro shares have plunged 60% over the past six months due in part to accounting concerns. However, shares have started to reverse course over the past week and a half.

A report today by Seeking Alpha analyst Silviu Manole said the stock price plummet presents a buying opportunity.

“SMCI is well-positioned to capitalize on the growing demand for AI infrastructure with their Direct Liquid Cooling technology and broader IT solutions,” Manole said. “A key proof of it is the NVIDIA (NVDA) partnership.”

“Despite past accounting irregularities and delisting risks, Super Micro’s leadership can be trusted to bring the company back on track,” he added.

Super Micro declined to comment on the 8-K.