Super Micro Computer (NASDAQ:SMCI) is on fire, with shares up over 29% in premarket trading Tuesday, following a late-night announcement that could mark a turning point. The company, a key player in storage and server technology, confirmed it hired BDO USA as its new independent auditor and submitted a plan to Nasdaq, requesting more time to file overdue financial reports. This bold move comes after months of turmoil, sparked by Ernst & Young's (EY) sudden resignation as auditor over concerns about Super Micro's financial practices. The company insists it's on track to meet Nasdaq's compliance standards, aiming to dodge the looming threat of delisting.

• Warning! GuruFocus has detected 5 Warning Signs with SMCI.

It's been a rough ride for Super Micro, with its stock hammered by short-seller Hindenburg Research's August report alleging accounting irregularities. The hits kept coming as the company slashed its earnings outlook not once but twice this year, leaving investors wondering if the worst was yet to come. But Monday's announcement seems to have flipped the script. CEO Charles Liang is doubling down on a comeback, emphasizing the company's commitment to urgency and diligence in fixing its governance and reporting. Hiring BDO signals a serious push to rebuild credibilityand investors are eating it up.

With a 16% pop on Monday followed by today's premarket fireworks, Super Micro's stock is clawing back some of its heavy 2024 losses, though it's still down 25% year-to-date. While Nasdaq hasn't officially greenlit the compliance plan, Wall Street's early reaction suggests traders are betting on a turnaround. The company now faces a critical few weeks to back up its big talk with action, delivering overdue filings and proving it can navigate the storm. For now, the market seems to think Super Micro has a shot at redemption.

This article first appeared on GuruFocus.