Super Micro Computer, a leading AI server company, has seen its shares plummet amidst a deepening scandal.
- August 27: Hindenburg Research accuses Super Micro of financial misconduct, including accounting manipulation. The stock drops sharply.
- August 28: Super Micro delays its annual 10-K report, citing the need for further internal control assessments.
- September 3: The company reassures stakeholders of its fiscal health despite ongoing turmoil.
- September 20: Super Micro receives a compliance warning from Nasdaq due to the delayed 10-K filing.
- September 26: Allegations of a DOJ investigation surface, adding to the company’s woes.
- October 30: Ernst & Young resigns as Super Micro’s auditor, citing reliability issues with the company’s financial statements.
- November 5: Preliminary Q1 earnings miss expectations, causing another stock price drop.
Current Status: Despite a recent internal review finding no evidence of fraud, the stock has not recovered. Super Micro’s shares are down 80% from their peak in March. The company struggles with delayed financial reporting and has not yet secured a new auditor or provided a clear timeline for filing its overdue financial reports.
Investor Outlook: The ongoing issues, potential DOJ investigation, and auditor resignation suggest significant underlying problems. Investors are advised to exercise caution, as further declines in stock value and potential Nasdaq delisting loom without swift and transparent remedial action from Super Micro’s management.
