Super Micro Hikes on Report Controversy
Super Micro Computer (NASDAQ:SMCI) announced it would delay its annual report filing due to the need for more time to assess internal financial controls, raising investor concerns. The company, which supplies servers for major AI firms, has seen its stock rise over 47% year-to-date, but faced backlash following Hindenburg Research's short position claim of accounting manipulation. Analysts at JPMorgan found some of Hindenburg's allegations difficult to verify and lacking detail. Following this news, SMCI shares rose 2.7%.
Shares of Super Micro Computer (NASDAQ:SMCI) opened Thursday, after the company announced it would not file its annual report for the fiscal year with the U.S. Securities and Exchange Commission on time.
?SMCI is unable to file its Annual Report within the prescribed time period without unreasonable effort or expense,” the company said in a release.
“Additional time is needed for SMCI’s management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.”
Super Micro makes computers that companies use as servers for websites, data storage and other applications, including artificial intelligence algorithms. The company’s customers include major players in AI, including Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC)
The stock is up more than 47% year to date, but investors were spooked on Tuesday after Hindenburg Research disclosed a short position in the company. Hindenburg said it identified “fresh evidence of accounting manipulation,” according to its report. It is unclear if the delay in Super Micro’s annual report is related to Hindenburg’s findings.
Analysts at JPMorgan said some of Hindenburg’s claims are “tough to verify,” and they think the report is “largely void of details around alleged wrong doings from the company.”
SMCI shares vaulted $12.14, or 2.7%, to $455.63.
