Artificial intelligence (AI) was hot again this week, and it wasn't just Nvidia's (NVDA +1.67%) earnings that were in focus. Super Micro Computer (SMCI +0.41%) was the huge winner, as it put forth a plan to become compliant with Nasdaq listing requirements.
According to data provided by S&P Global Market Intelligence, Super Micro Computer's shares were up as much as 85% this week, C3.ai (AI 0.86%) was up 43.9%, and BigBear.ai Holdings (BBAI +2.53%) jumped 47.6%. At 3 p.m. ET on Friday, the stocks were up 78.1%, 42.8%, and 45.3%, respectively, for the week.
NASDAQ: SMCI
Key Data Points
Super Micro Computer's new plan
On Wednesday, Super Micro Computer announced it had submitted a plan to Nasdaq to regain compliance to be listed on the exchange. That includes filing the company's annual 10-K for fiscal 2024 and the first quarter of fiscal 2025 10-Q.
A key to the plan was Monday's announcement that BDO has been hired as the company's auditor. The company's previous auditor, Ernst & Young, resigned on concerns about management's governance and transparency.
When a company's auditor quits, it can be a sign there are hidden risks that investors aren't anticipating. And the remedy can take months or even years, potentially ending with being delisted from the exchange. This doesn't solve Supermicro's problems, but it puts the company on a path to normal reporting again.
C3.ai's big announcement
At Microsoft Ignite, C3.ai announced a strategic alliance with Microsoft to "accelerate the adoption of Enterprise AI on Microsoft Azure." This includes initiatives like technical integration, product development, and joint sales and marketing.
This is a natural partnership, given the common enterprise customers the companies have in common and the scale Microsoft can bring.
Nvidia is the elephant in the room
On top of these company-specific news items, Nvidia's earnings were the big news this week, as the company released fiscal third-quarter 2025 financial results. Revenue was up 94% to $35.1 billion, and net income jumped 109% to $19.3 billion, or $0.78 per share.
Management continued to say demand is greater than supply for AI systems, and guidance for the fiscal fourth quarter (which Nvidia usually beats) was for $37.5 billion in revenue, continuing the growth march.
The one trend that weakened for Nvidia was gross margins, which have fallen from 75.5% in the fiscal second quarter of 2025 to a guided range of 73% to 73.5% in the fiscal fourth quarter. This indicates that pricing power isn't quite as high as it once was for Nvidia, which makes sense as the company grows and AI chips become more competitive.
The AI momentum continues
It's been an incredible two years for AI, but the momentum doesn't seem to be stopping. And with Nvidia indicating that there's at least a few more quarters of growth, investors may see more gains ahead.
Even companies like BigBear.ai that didn't announce anything significant this week are benefiting from the rising tide lifting all stocks. Someday, the tide will turn, but it certainly didn't this week.
