Nvidia is shifting its orders from Super Micro Computer to alternative suppliers in response to Super Micro’s persistent financial reporting issues, aiming to stabilize the AI server market.
- Background: Super Micro, known for its AI servers, faces potential delisting if it fails to submit financial statements by November 20. This follows a previous delisting in 2018 due to non-compliance with financial filings.
- Immediate Actions: Nvidia has started redirecting client orders from Super Micro to other providers like Gigabyte and ASRock to minimize disruptions in the supply of AI servers.
- Financial Impact: Shares of Super Micro plummeted over 45% last week, marking its most significant drop on record, triggered by the resignation of its auditor.
- Supply Chain Shifts: Companies such as Gigabyte and ASRock are benefiting from the redirected orders, with Gigabyte increasing its revenue forecasts and ASRock experiencing a surge in orders.
- Wider Effects: The instability at Super Micro is affecting its broader supply chain, with impacts felt by companies like Leadtek, backed by Super Micro’s closely linked entities, Ablecom and Compuware.
Nvidia’s proactive steps to redirect orders demonstrate its commitment to maintaining stability within the AI server market, despite the challenges posed by Super Micro’s financial uncertainties. This move is also reshaping the competitive landscape, providing opportunities for other companies in the sector.
