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Super Micro Computer shares
SMCI.O fell more than 20% in pre-market trading on Wednesday, as an unclear timetable for its annual report as well as weak quarterly forecasts fueled the
investor concerns about artificial intelligence server maker.
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 previous auditor and the special committee are at odds with each other, increasing confusion around current developments rather than 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.
The company also forecast second-quarter revenue and profit below Wall Street expectations on Tuesday, as it awaits delivery of Nvidia's latest chips NVDA.O .
Super Micro shares have been choppy 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 amounts of data.
Its stock is down about 2% this year, after rising more than 240% last year.
Super Micro is trading at a forward price-to-earnings ratio of 7.56, compared to 14.70 for Dell Technologies DELL.N and 9.51 for Hewlett Packard Enterprise HPE.N .
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