At one point last year, Super Micro ComputerSMCI

was one of the market’s best performers — rising upwards of 300%. But then, everything changed when prominent short seller Hindenburg attacked. Accused of accounting irregularities and financial manipulation, the company’s auditor dropped the high-flying AI beneficiary, delaying its earnings and calling into question the legitimacy of its big run. But down over 70% from its all-time high, investors have been warming back up to the ailing firm.

• Before its “business update” on Tuesday,SMCI
  shares had surged over 30% to start the year, with investors betting the firm would continue benefiting from rising AI infrastructure demand and its strategic partnership with NvidiaNVDA
  .
• Ultimately, the company’s unaudited results showed revenue slowing considerably from the 100%+ YoY growth in previous quarters, with sales rising just 54% to $5.6B.

The road ahead: Investors might have a few legitimate reasons to steer clear. For one, while Super Micro’s review found “no evidence of misconduct,” Wedbush analyst Matt Bryson sees “substantial uncertainties” in its financial reporting and sales outlook. That means the $20B+ in trailing twelve months revenue might be impressive — or imaginary. Second, analyst coverage has dropped by more than half since September, with only ten analysts covering the stock and seven maintaining hold or sell ratings. The average price target signals an 18% downside, reflecting concerns over transparency and rising AI infrastructure competition. And finally, the organization faces a critical Feb. 25 deadline to file its delayed annual report with the SEC after receiving an extension from Nasdaq to avoid potential delisting. Ultimately, Super Micro may hold a strong position in AI servers, but it still needs to prove its turnaround isn’t just server-side smoke and mirrors.

Contributing reporting by Rhea Lobo.