Super Micro Computer (NASDAQ: SMCI) stock plunged across the last week of trading. Its share price ended the period down 24.2% from the previous week's market close, according to data from S&P Global Market Intelligence.

Supermicro stock lost ground last week, in conjunction with news that the company may miss the filing deadline for submitting its 10-Q report to the Securities and Exchange Commission (SEC). The share price also took a hit after Cisco announced more about its plans to compete in the artificial intelligence (AI) server market. Supermicro's share price is now down 35% year to date, and 84% from the all-time high that it reached in March.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free ?

Filing delays and emerging competition pressure Supermicro

In order to remain in compliance with the SEC and continue to trade on major stock exchanges, public companies have to file regular financial reports and disclosures. Given that Supermicro still has not filed its annual 10-K report for its 2024 fiscal year, which concluded June 30, it was expected that the company wouldn't be able to get the filing for the first quarter of its current fiscal year in on time. But news that the server specialist's 10-Q report will be delayed highlighted a big risk factor for investors.

Because Supermicro's 10-K has not been filed within the grace period, the company's stock is at risk of being delisted from the Nasdaq Stock Market. In October, Ernst & Young stepped down as the tech specialist's auditor and stated that it did not want to be associated with management's financial representations. Thus far, Supermicro does not appear to have hired a new auditor -- and key work on preparing filings for the SEC will not be able to proceed until one is hired.

Making matters worse, Supermicro stock has started to look riskier due to potential shifts in the company's competitive positioning. In a quarterly report last week, Cisco shared more details about its push into the AI server market. Contrary to some earlier expectations, Cisco will be making Nvidia's advanced graphics processing units (GPUs) central to its servers. Reports had previously emerged that Nvidia was diverting GPU orders that would have gone to Supermicro to competitors in the space, and it looks like some of those orders may be going to Cisco.

What comes next for Super Micro Computer?

Supermicro stock began rallying in after-hours trading on Friday, and there's a good chance that it will open up Monday's daily session with big gains. The company is now expected to submit a filing plan to the Nasdaq exchange that will allow it to avoid immediate delisting. If the plan is not submitted and accepted, the stock would be removed from the exchange and begin trading over the counter.