These are intense days in the semiconductor sector. The rise of AI has made this field one of the most powerful spark plugs in the technology stock market engine, with Nvidia being the most powerful fuel of all. However, doubts remain about the real strength of artificial intelligence and the fear of a bubble is widespread among investors. In this delicate context, the bearish fund Hindenburg Research has published a report in which it accuses Super Micro Computer of having manipulated its accounts. Big words, since Super Micro Computer is considered Nvidia’s stock market squire: in the first quarter of the year, it rose more on the stock market than the Magnifica led by Jensen Huang. Although this information only caused an 8% drop, which it managed to recover, this Tuesday the dark clouds have definitively settled over Super Micro Computer, after delaying the publication of its financial report. A decision that has cost it a 20% drop.
Super Micro Computer announced on Wednesday that it needs time to publish its annual financial report. Specifically, the company said it needs more margin to realize the annual form 10-Ka document required by US federal law, which provides an overview of the company’s business and financial situation. In this sense, the firm indicated that it needed time to “complete its evaluation of the design and operating effectiveness of internal controls” related to the financial information to be published.
The announcement comes a day after Hindenburg Research released a report in which it noted that it had found manipulations of its accounts, as well as “clear negligence in the company’s accounting, evidence of unrecorded third-party transactions, errors in export control and sanctions, and problems with customers.” In addition, the bearish fund, which reported opening a short position on Super Micro, recalled the accounting scandal in which the firm was involved in 2020The company managed to archive the investigation after making various corrections, however, Hindenburg’s report warns that those responsible for this bitter episode are once again in charge of Super Micro Computer.
So it seems that Hindenburg Research has timed its bearish blow precisely. The report comes weeks after the presentation of accounts that disappointed the market, which led to the stock market falling by 20% in early August. Moreover, on the eve of Nvidia’s results, accounts have been published that will reveal the true strength of the AI boom, in the heat of which Super Micro Computer was able to increase by more than 90% in the stock market this year until yesterday.
The situation is dangerous, because Super Micro Computer has lost more than 30% in the stock market over the past five days.. The company’s credibility is in doubt after the decision to delay its 10-K report, and it remains to be seen whether Nvidia’s strong results could provide a boost to the company founded and led by Charles Liang. However, it’s still too early to tell whether what was considered Nvidia’s best team actually manipulated its accounts.
