Super Micro’s $600 Target Stalls as 33% Stock Dive Follows EY Audit Exit, DOJ Probe, and Red Flag Allegations

[{"selector":"#anim-3a5daaf5-b6e0-4228-842f-5dc047254582","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36737fd9-af88-46ca-8aa1-91d35cae1526","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-14b31be0-b630-4f88-b102-53039f8cfd56","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ff82f53b-f9e0-4d72-b7fb-c5bf7d20be4a","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-338e58bf-7116-4274-a060-52f7c62fc8fd","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03112ca3-79f9-4762-9d36-a0186f74f4ec","keyframes":{"transform":["translate3d(0px, 229.01237%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Super Micro's auditor, Ernst & Young (EY), resigned on October 30, 2024, citing serious concerns over the company's internal controls, board independence, and financial statement reliability, refusing to be associated with management's prepared financial statements. Photo Source- nullrend (CC BY-SA 2.0) Photo Source- nullrend (CC BY-SA 2.0)

[{"selector":"#anim-fb6691e1-ee49-4668-bb5c-ea3a1e20065e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c05ca147-6dea-4a68-b3fb-d0974f6eebc9","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-dcd0ed4b-d4fe-4646-8de6-fc82dec464d0","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] SMCI shares plummeted by over 32% to $238.73 following the auditor's resignation announcement, erasing billions in market value in a single trading day.

[{"selector":"#anim-69bddd65-ae51-4986-b313-8ab362a94e04","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-23a3bc0a-20a0-4bd7-921e-7ce25eaf15a8","keyframes":{"transform":["translate3d(0px, 435.80282%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22703ba0-39c6-4d24-bc45-d078ea3ad7c2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e4cdf35d-5294-4f5b-be0b-3f3657bcc64d","keyframes":{"transform":["translate3d(0px, -100.05241%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-93f3a1da-0fc8-4973-8aa6-707a5e50447b","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22d9965b-3dc7-445c-948f-fae3923423f9","keyframes":{"transform":["translate3d(0px, 173.20728%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] EY cited multiple critical issues in their resignation, including inadequate internal controls, questionable board independence, and concerns about management's commitment to implementing necessary improvements in financial reporting processes. Photo Source- EuroCarGT (CC BY-SA 4.0)

[{"selector":"#anim-7e3ec5ee-e70c-4115-8dbc-9a269d01869a","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f7c6589a-bd77-42ec-beb9-3a6a61cd07c3","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6530ba21-76d1-43c7-9b01-249d992a4e6e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a94df90b-1014-464e-98d1-a996d59f0b04","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3ef81ee2-16c1-4c14-932c-ccdced143663","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7b5a63d9-8fa3-4495-a802-534440422acd","keyframes":{"transform":["translate3d(0px, 229.01237%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Hindenburg Research published a detailed report in August 2024, accusing Super Micro of engaging in accounting manipulation, undisclosed related-party transactions, and potential sanctions evasion. Photo Source- nullrend (CC BY-SA 2.0) Photo Source- nullrend (CC BY-SA 2.0)

[{"selector":"#anim-e0d724e8-08e0-44ab-a5dd-2c324dcc37a8","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c4983585-5805-4939-9d98-e10ff58396c5","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-323dd559-7552-452f-9d85-7fc561c56f84","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Super Micro delayed filing its annual report (Form 10-K) for fiscal year 2024, raising significant investor concerns about financial transparency and regulatory compliance.

[{"selector":"#anim-d7804e67-b620-4cd1-b9b8-474c9f7fa64a","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c266553b-d18b-4027-b41e-9f38554ae82a","keyframes":{"transform":["translate3d(0px, 435.80282%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ffccf299-5268-4030-9af4-2962a3eb1011","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d8a86b5b-90a4-4830-aba6-f2377e5e18fb","keyframes":{"transform":["translate3d(0px, -100.05241%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bc2a863c-a832-4915-bf35-174f36e35f8c","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-058f8c54-287a-43b8-942b-f28a8c71fc6a","keyframes":{"transform":["translate3d(0px, 244.22223%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The U.S. Department of Justice launched an investigation into Super Micro's accounting practices, adding to the mounting regulatory scrutiny facing the company. Photo Source- w:User:Coolcaesar (CC BY-SA 3.0)

[{"selector":"#anim-d9e3942f-b46b-4bd9-a81e-9439083022ca","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d80f041c-47d1-491a-8f64-f14179572924","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa3a59d3-ea7d-4c5a-ac53-47488d1b80dd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f50fd0a8-5827-4d46-a49c-7e207d90c343","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e1e42003-4b40-4d63-b586-f0db2b1b6726","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5bae2268-fdc7-419b-9284-7882c5db1ccf","keyframes":{"transform":["translate3d(0px, 229.01237%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] In 2020, Super Micro paid a substantial $17.5 million penalty to the Securities and Exchange Commission (SEC) for prematurely and improperly recording revenue and hiding sales information from auditors. Photo Source- patrickroque01 (CC BY-SA 4.0) Photo Source- patrickroque01 (CC BY-SA 4.0)

[{"selector":"#anim-e05ab28e-e781-408e-9c27-e77ccad7b26f","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-08d15fe1-2255-49a4-8003-814f091b1773","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f6570c55-58fe-495e-8478-817d97a11492","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15b952d1-7b6f-4eaf-89bd-cd907564bf40","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ce78a6ce-b167-4b43-83ae-ade8c2065c57","keyframes":{"transform":["translate3d(0px, 435.80282%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Investment firm Needham, which had previously set an optimistic $600 price target for SMCI shares, suspended its rating due to uncertainties surrounding the company's financial statements and governance practices. Photo Source- 中文（臺灣）： 中華民國總統府 (CC BY 2.0)

[{"selector":"#anim-685dd43b-6cb4-4976-9f44-8d39af35e123","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5a69c599-3da5-409a-9c62-632c914fcac3","keyframes":{"transform":["translate3d(0px, 435.80282%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4f6ff2a3-dd90-4636-a000-54a1b2ae21aa","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e3d6eda3-5aa6-4404-8046-caef326d01a4","keyframes":{"transform":["translate3d(0px, -100.05241%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ae7c9859-9317-4405-adb2-9c007c29c2c7","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-74ecb51e-528e-4919-aef4-183a7168b8c6","keyframes":{"transform":["translate3d(0px, 244.22223%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Photo Source- keiichiro shikano (CC BY 2.0) Super Micro has been a crucial player in the AI infrastructure sector, recently deploying over 100,000 GPUs with liquid cooling solutions for major AI data centers and cloud service providers.

[{"selector":"#anim-0d39f65d-74bd-4292-a536-609f07cbae2c","keyframes":{"opacity":[0,1]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9034a929-59ae-4d6d-9c75-2557534a0323","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b976b328-835d-455c-bcc3-43e0820d9a9f","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-506ce71e-6c6f-4cf6-8208-25e520b03019","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a829c9a4-ae7e-4844-a35c-dfae127b766b","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-095190df-d98a-4bdb-a42d-5f4d6c483333","keyframes":{"transform":["translate3d(0px, 229.01237%, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The company's upcoming business update scheduled for November 5, 2024, is highly anticipated by investors seeking clarity on these issues and the company's plan to address the governance and accounting concerns. Photo Source- patrickroque01 (CC BY-SA 4.0) Photo Source- patrickroque01 (CC BY-SA 4.0)

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Super Micro’s $600 Target Stalls as 33% Stock Dive Follows EY Audit Exit, DOJ Probe, and Red Flag Allegations

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