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.
Full Episode
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.
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.
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.
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