Shares of Super Micro Computer fell more than 20% in early market trading Wednesday as an unclear timeline for its annual report as well as weak quarterly forecasts fueled investor concerns about the computer server maker. artificial intelligence.
The company's auditor, Ernst & Young, unexpectedly withdrew last week after highlighting some concerns about its financial reporting. Super Micro said Tuesday that an investigation by a special committee of its board found no evidence of fraud or misconduct.
“The actions of the former auditor and the special committee are contradictory and increase confusion around current developments, instead of helping with greater transparency,” JPMorgan analysts said in a note.
In late August, Super Micro also delayed filing its annual report, citing the need to evaluate “its internal controls over financial reporting.”
This came a day after short seller Hindenburg Research said it had taken a short position in the stock, alleging “accounting manipulation” at the company.
Super Micro risks being delisted from Nasdaq if it fails to meet deadlines later this month.
On Tuesday, the company also forecast second-quarter sales and profits below Wall Street expectations as it awaits delivery of Nvidia's latest chips.
Super Micro shares have seen fluctuations since peaking in March thanks to the rise of generative artificial intelligence technology, which has driven demand for AI-powered servers and hardware used to process large quantities of data.
Its stock is down about 2% this year, after rising more than 240% last year.
Super Micro trades at a forward price-to-earnings ratio of 7.56, compared to 14.70 for Dell Technologies and 9.51 for Hewlett Packard Enterprise.
