The Nasdaq 100 index drops Super Micro's stock by 7%.

• After being part of the Nasdaq 100 for only five months, Super Micro is leaving the index.
• On Friday, the stock dropped by 7%, leaving it over 70% below its March high.
• This month, the company was granted an extension to maintain its Nasdaq listing.

In July, the company joined the Nasdaq 100. However, five months later, it was removed from the index, causing the stock to decline by 7%.

The Nasdaq index, comprising the top 100 non-financial stocks on the Nasdaq, has removed Super Micro, which is the basis for an exchange-traded fund, one of the most actively traded ETFs.

Super Micro experienced a tumultuous year, reaching a record high of $118.81 in March due to high demand for its AI-powered servers. Its market cap surpassed $70 billion, making it eligible for the S&P 500.

Super Micro's market value is currently approximately $20 billion, which is roughly one-fourth the median market capitalization of Nasdaq 100 companies. Additionally, Nasdaq will remove Super Micro and two other companies from the group effective December 23.

MicroStrategy shares have experienced a 600% increase in value this year, and the company's worth is linked to its billions of dollars worth of bitcoin purchases. Additionally, MicroStrategy shares rose by 4% on Monday.

In August, Super Micro's annual report filing with the SEC was delayed, and Hindenburg Research revealed a short position in the company and accused it of accounting manipulation.

In October, Super Micro experienced a 33% stock plunge after Ernst & Young resigned as its auditor. An independent special board committee investigated concerns raised by Ernst & Young and found no misconduct following a three-month investigation. The report recommended that the company replace its CFO. In November, Super Micro announced that BDO would be its new auditor.

Super Micro was facing the possibility of being removed from Nasdaq for the second time due to its delayed financial reports, but it was granted an extension until February 2025 two weeks ago.

The company's preliminary earnings report revealed that revenue for the third quarter increased by 181% compared to the same period last year, although it fell short of analysts' expectations.

During a November conference call with analysts, CEO Charlies Liang stated that while competition is intense, he believes our company is in a favorable position. Our competitors are Dell and HPE.

WATCH: Super Micro appoints BDO as independent auditor