U.S. technology company Super Micro Computer (SMCI) has been targeted in a new report by notorious short seller Hindenburg Research.
In its report, Hindenburg Research, which holds a short position against Super Micro Computer’s stock, accused the maker of artificial intelligence (A.I.) servers of “accounting manipulation” and other malfeasance.
The report is sharply critical of the company that has been one of the biggest winners of the A.I. trade over the past year.
In its report, Hindenburg said it found evidence of undisclosed related party transactions, and failure to abide by export controls, among other problems.
“Super Micro faces significant accounting, governance and compliance issues and offers an inferior product and service…” writes Hindenburg in its report.
The report goes on to say that a partnership with microchip giant Nvidia (NVDA) has allowed Super Micro Computer to capitalize on the surge in demand for it’s A.I. servers.
Hindenburg also accuses Super Micro Computer of re-hiring top executives that were directly involved in a previous accounting scandal that led the company’s stock to be temporarily delisted from the Nasdaq exchange in 2018.
After soaring in 2023 and the start of 2024, the stock of Super Micro Computer has fallen 55% since hitting an all-time high in March of this year. The share price is currently at $547.64 U.S.
Tech Insider
