super microcomputer (NASDAQ:SMCI) has been on a news rollercoaster ride with a mix of ups and downs, drawing attention to itself.

The latest curveball? As part of the index’s quarterly reorganization, Super Micro Computer is set to exit the tech-heavy Nasdaq-100 ahead of its opening on December 23rd. This measure eliminates the obligation for institutional investors who are bound to track the index to retain the share.

On a positive note, Nasdaq accepted SMCI’s request to extend the deadline for filing its annual report. The troubled server company now has until the end of February to submit its audited financials, which it hopes will be enough to prevent a delisting.

In other good news, a special committee convened by SMCI to address concerns raised by the company’s previous auditor found “no evidence of misconduct by management or the board.” While these results are reassuring, they still require validation from SMCI’s new auditor, BDO, and final approval from Nasdaq.

The question for investors remains: Can SMCI meet the exchange’s requirements in a timely manner? Otherwise, the stock could face a serious blow.

One investor, known by the pseudonym Hataf Capital, believes the potential returns more than justify the risks.

“With the regulatory overhang largely resolved and strong fundamental growth intact, I believe SMCI presents an exceptional risk-reward opportunity at current levels,” explains the investor, noting that the special committee’s findings raise important concerns have cleared up the issues that are weighing on the share price.

In addition, according to the investor, the company has numerous business opportunities in front of it. Hataf places particular emphasis on Nvidia’s industry-leading Blackwell GPUs, which work with SMCI’s liquid-cooled servers.

“SMCI’s close partnership with Nvidia places the company at the epicenter of this cross-generational hardware upgrade cycle,” the investor added.

According to Hataf, SMCI’s valuation makes the opportunity even more attractive. Its forward P/E multiple of 13.4 is well below the industry median of 26.2x and represents an attractive entry point for long-term investors.

“SMCI’s current market price reflects ongoing regulatory concerns rather than the company’s fundamental value and growth potential,” the investor claims.

To this end, Hataf Capital upgrades SMCI stock to “Strong Buy,” calling it a “compelling investment opportunity.” (To view Hataf Capital’s track record, click here)

Meanwhile, Wall Street appears to be more cautious, opting to monitor developments before taking a final stance. The stock has received a consensus rating of Hold (i.e. Neutral) based on two Buy, five Hold, and two Sell recommendations. Still, its 12-month average price target of $38.57 suggests a potential upside of 22%. (See SMCI stock prediction)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is for informational purposes only. It is very important to do your own analysis before investing.