:max_bytes(150000):strip_icc()/INV_SuperMicroCEO_GettyImages-1828862796-38d0754b91bb49f4a6fe10442d4b4f3c.jpg "Super Micro Computer Stock Hit by Report Alleging ‘Accounting Manipulation’")
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Key Takeaways
- Hindenburg Research accused Super Micro Computer of “accounting manipulation” in a report published Tuesday.
- The well-known short-selling firm alleged undisclosed related-party transactions at Super Micro and a failure to comply with export controls, among other issues.
- Super Micro Computer makes server technology and hardware used in data centers, making it a big winner from the AI boom.
Super Micro Computer (SMCI) shares slipped Tuesday after short seller Hindenburg Research disclosed a short position in the artificial intelligence (AI) technology firm.
Hindenburg’s report accused Super Micro Computer of “accounting manipulation, sibling self-dealing and sanctions evasion.” The shares, which dropped substantially in premarket trading, were recently down nearly 3%.
The report, the claims of which Investopedia hasn’t independently verified, describes a three-month investigation by Hindenburg into Super Micro that included interviews with former senior employees. It alleges major accounting lapses, including undisclosed related-party transactions and failure to comply with export controls. The company did not immediately respond to a request for comment.
Nvidia Partner Gains on AI Boom
Super Micro Computer, which makes server technology and hardware used in data centers, has been a major beneficiary of the AI boom. As an Nvidia (NVDA) partner, Super Micro has shared in some of the gains made by the market’s AI darling, and its hardware is found in some Nvidia data center technology—including that used by Elon Musk’s AI company, xAI.
Shares of Super Micro have nearly doubled in 2024, although its price is down more than 50% from its March peak. The company earlier this month reported fiscal fourth-quarter earnings that missed analysts’ estimates and announced a 10-for-1 stock split.