Server maker Super Micro Computer’s (SMCI) stock begins trading today (Oct. 1) on a 10-for-1 split adjusted basis.
The stock split lowers Super Micro Computer’s share price to $41.64 U.S. based on a closing price of $416.40 U.S. on Sept. 30.
Existing shareholders will receive 10 additional shares for each one they previously owned.
The company announced the stock split on Aug. 6 when the share price was more than 30% higher and trading at $616.94 U.S.
In this year’s first half, Super Micro Computer’s stock rose more than 300% and was the top performing security in the benchmark S&P 500 index, outpacing Nvidia’s (NVDA) stock.
However, since the stock split was announced, Super Micro Computer’s share price has fallen 65% due to a critical report from short seller Hindenburg Research.
On Aug. 27, Hindenburg published a report accusing Super Micro Computer of accounting irregularities.
Super Micro Computer denied the allegations, but a day later announced that it was delaying filing its annual report with the U.S. Securities and Exchange Commission (SEC).
Management has said they are reviewing internal accounting practices. On Sept. 28, it was reported that the U.S. Justice Department has launched a probe into Super Micro Computer.
Super Micro Computer makes servers that run artificial intelligence (A.I.) microchips and processors developed by companies such as Nvidia and Broadcom (AVGO).
Both Nvidia and Broadcom also split their stocks on a 10-for-1 basis earlier this year.
Despite all the recent drama surrounding the company, Super Micro Computer’s stock is still up 45% this year.
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