Super Micro (SMCI) surges after filing delayed reports in time with SEC. (00:22) Tesla's (TSLA) market cap falls below $1 trillion as European sales drop. (01:35) China says Taiwan seeks to give away chip industry as 'souvenir' to US - report. (02:26)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Wednesday: LCID, SMCI, and moreAlibaba's video, image making AI tool open to publicTrump says Zelenskyy meeting on deck as U.S.-Ukraine reach tentative minerals dealWarner Bros shutters three game studios, axes Wonder Woman video gameSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Chapter 1: Why did Super Micro's stock surge?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Wednesday, February 26th. I'm Julie Morgan. Supermicro makes the deadline. Tesla's market cap falls. And China makes a big accusation against Taiwan. Supermicrocomputer is up 26% in pre-market action.
This after the company filed its delinquent financial reports to the U.S. Securities and Exchange Commission just ahead of its deadline. Shares of SMCI closed Tuesday 11.5% lower. There was uncertainty about whether it would file its audited annual report for fiscal 2024 and the first two quarters of fiscal 2025. by the February 25th deadline. If not, it faced a possible delisting from NASDAQ.
In Supermicro's 10K filing, the company contends it does not agree with Ernst & Young's resignation or its reasons for doing so. Concerns about the company's financial statements cropped up in late August when Hindenburg Research issued a report that it was short Supermicro's shares. A day later, Supermicro said it was delaying its annual 10K filing.
Supermicro works closely with companies such as NVIDIA, Advanced Micro Devices, and Intel to develop products that are compatible with the latest generation of industry-standard technologies. It also creates liquid cooling systems for GPUs and CPUs in data centers. Now an update to a story we first told you about on Tuesday on Wall Street Lunch with Kim Kahn.
Chapter 2: What are the implications of Tesla's market cap falling?
Tesla tumbled on Tuesday, pushing its market cap below $1 trillion for the first time since November 2024. The EV maker's stock fell 8.39%, closing at $302.80 on Tuesday, with the company's market cap now at $948 billion. The decline follows data from the European Automobile Manufacturers Association, which showed that Tesla's sales in Europe dropped 45% in January.
Tesla's shares have lost about 25% in value year-to-date, despite rising over 51% in the past year. Investors have also raised concerns over the CEO's alliance with President Trump and his political involvement. China has recently accused Taiwan of attempting to relinquish its semiconductor industry to the US to gain political leverage and support from Washington.
Chapter 3: How is China's accusation impacting Taiwan's chip industry?
This accusation was made by a spokesperson for China's Taiwan Affairs Office at a news conference in Beijing. Reuters reported that the spokesperson claimed that Taiwan's ruling Democratic Progressive Party is using the semiconductor industry to seek independence by relying on foreign countries, even offering it as a souvenir to the U.S.
The accusations come amid reports that Taiwan Semiconductor Manufacturing, the largest contract chip maker and a major supplier to companies like Apple and Nvidia, has been in talks for a stake in Intel. The reports add that neither TSMC nor Intel have confirmed these reports, and Taiwan's government states it has not received any information about an overseas investment application from TSMC.
Now let's take a look at the trending stories on Seeking Alpha at this early hour. Alibaba's video and image-making AI tool is open to the public. President Trump says his meeting with Zelensky is on deck as the U.S. and Ukraine reach a tentative agreement on minerals. And Warner Bros. shutters three game studios and axes the Wonder Woman video game. On our Catalyst, watch for the day.
Notable investor events include 3M Company's Investor Day, Little Fuse's Investor Day, Deering Company's annual meeting with several shareholder proposals going to a vote, and International Money Express's Investor Day. Shareholders of Charter and Liberty Broadband will vote on their planned merger. Amazon will hold a product event.
The tech giant is expected to announce a major artificial intelligence upgrade for its voice assistant, Alexa. There is also speculation that a new smart home product could be introduced. And NVIDIA will hold its earnings conference call. Options trading implies a 7% share price swing after the report is released.
Notably, over the last two years, NVIDIA has seen its two biggest earnings day moves following the February release of the Q4 results. Fabrinet is the supplier that has had the closest trading correlation to NVIDIA over the last three years, moving in tandem with the chip giant 88% of the time. Now for a look at the markets today ahead of the opening bell.
Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.3% at $68 a barrel. Bitcoin is up 1% at $89,000. In the world markets, the FTSE 100 is up 0.6% and the DAX is up 1.1%. Workday is on our list of the biggest movers of the day pre-market. WDAY is up nearly 12% after the back-office software provider posted strong Q4 results and guidance, with revenue rising 15%.
On today's economic calendar, at 10 a.m., new home sales. At 11 a.m., a survey of business uncertainty. And at noon, the Fed's Rafael Bostic will participate in a conversation on the economic outlook in housing before the Urban Land Institute's annual Housing Opportunity Conference. That's it for today's Wall Street Breakfast. Thanks for listening.
To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.
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