Super Micro Computer is still in troubled times.

Riding the wave of AI chips, $NVIDIA(NVDA.US) 's partner $Super Micro Computer(SMCI.US) has gained significant attention, even surpassing NVIDIA's momentum. Around April this year, its stock price surged more than tenfold from $11 a year ago, peaking at $122.90 (data from Tencent's stock app), outperforming NVIDIA's growth.

However, after April, NVIDIA's stock continued to rise, overtaking $Apple(AAPL.US) to become the world's most valuable company, while Super Micro Computer's stock plummeted, nearly returning to its original level, as shown below.

The main reasons for Super Micro Computer's significant market cap contraction include Wall Street's profit-taking from small tech firms like SMCI due to concerns over AI investment returns, as well as a short report by Hindenburg Research in August accusing the company of accounting manipulation. Super Micro Computer delayed its fiscal year 2024 and Q3 reports.

The Nasdaq exchange warned SMCI that delaying audited results violates listing rules, requiring a compliance plan within 60 days to maintain its listing status. The deadline was November 18.

Facing potential delisting, SMCI's stock struggled.

However, on November 18, SMCI announced appointing BDO USA as its new auditor and submitted a compliance plan to Nasdaq, temporarily easing delisting fears.

This news drove SMCI's stock up 15.93% on November 18, with an additional 39.79% surge in after-hours trading.

Is SMCI out of trouble? Probably not.

On March 9, 2023, SMCI appointed EY as its independent auditor for fiscal year 2024, replacing Deloitte. Less than a year later, the short report alleging financial fraud put EY under pressure. Despite SMCI's remedial measures, EY resigned in October.

Now with BDO taking over, it's unclear whether SMCI can resolve its audit issues and avoid delisting.

Another challenge is rumors of NVIDIA's Blackwell chip having cooling issues, potentially delaying deliveries. SMCI's new SuperCluster—an AI data center solution using Blackwell—could face inventory buildup and revenue risks if delays occur.

NVIDIA may collaborate with $Taiwan Semiconductor(TSM.US) to optimize production, but any changes could increase costs and risks for SMCI, suggesting its crisis isn't over yet.

By: Mao Ting