Super Micro Computer Faces DOJ Probe Over Accounting Violations, Stock Down 17.5%

Sep 26, 2024, 03:09 PM

Super Micro Computer, a server maker that experienced significant growth during the artificial intelligence boom, is being investigated by the U.S. Department of Justice for alleged accounting violations. The probe follows a critical report by the activist short-selling firm Hindenburg Research and a Wall Street Journal report. Accusations from a former employee have also surfaced, claiming accounting manipulation within the company. Super Micro's stock has plummeted, being halted multiple times and dropping as much as 17.5% in a single day, including a 13% drop shortly after the news broke. The company's market capitalization has seen a drastic reduction from $72 billion to $22 billion. This investigation has caused significant volatility in the market, affecting not only Super Micro but also its major clients, including Nvidia.