Key TakeawaysSuper Micro Computer reports earnings after the bell Tuesday, with its stock nearly 80% below its highest point in March.The few analysts covering the stock mostly have a cautious view of its outlook, but expect it will regain some of the value it has lost in recent months.Concerns with the company's accounting practices have sent the stock lower amid a report from a short seller, delayed filings, and the recent resignation of EY as its auditor. Super Micro Computer (SMCI) is set to report earn ...

The resignation of its auditor sent Supermicro shares plummeting.The saga around Super Micro Computer (SMCI -0.08%) continued with the stock plunging on news that its auditor has resigned. The stock has bounced around like a ping-pong ball this year, with a number of extreme moves to both the upside and downside. Now the stock is down 9% year to date.Let's take a closer look at some of recent drama around the stock and see if we can determine whether the stock is a buy or if it best to just stay away.Questi ...

The Super Micro Computer stock (NASDAQ: SMCI ) has traded down by more than 40% after Ernst & Young (EY) resigned from the audit engagement on October 30. The stock has lost more than 40% of its value over the pastAnalyst’s Disclosure: I/we have a beneficial short position in the shares of SMCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business ...

Results from Super Micro Computer Inc (NASDAQ:SMCI) are due on Wednesday but the performance of the server manufacturers and Nvidia's third-largest customer is likely to "take a back seat" to other concerns, analysts say.   Shares in Super Micro lost over 45% of their value last week after Ernst and Young resigned as its auditor, taking the decline in the shares to almost 70% over six months, following a Wall Street Journal report about the launch of a Department of Justice investigation, a warning in Septe ...

Core Viewpoint - Semiconductor companies, particularly Nvidia, have experienced significant stock performance due to the rise of AI adoption, but concerns about valuations and potential corrections loom [1]. Group 1: Nvidia's Performance and Market Position - Nvidia's year-to-date returns stand at 188.08%, with current shares trading at $138.76, reflecting a 3.61% loss over the past week [1]. - The company's market capitalization is approximately 12% of the United States GDP, raising concerns about overvaluation and the possibility of a market correction if AI is in a bubble [1]. Group 2: Risks from Super Micro Computer (SMCI) - SMCI, a key customer for Nvidia, faces potential delisting due to regulatory noncompliance, which could trigger a selloff of Nvidia shares [2]. - Nvidia's revenue is highly concentrated, with 46% coming from just four customers, and SMCI is estimated to account for nearly 9% of Nvidia's revenue [3][4]. Group 3: SMCI's Recent Troubles - SMCI's stock plummeted by 30% following allegations of accounting fraud and the resignation of its auditor, Ernst & Young [5]. - The company is at risk of being delisted on November 16, coinciding with Nvidia's Q3 2025 earnings report, which could negatively impact investor sentiment regarding AI spending [6]. Group 4: Nvidia's Strategic Response - Nvidia is reportedly shifting orders away from SMCI to other customers, mitigating the impact of SMCI's potential downfall [7]. - Demand for Nvidia's latest Blackwell architecture chips is extremely high, with products sold out for the next 12 months, suggesting that Nvidia can compensate for any revenue loss from SMCI [8].

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Charles Liang, chief executive officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The trade show runs through June 7.Super Micro investors continued to rush the exits on Friday, pushing the stock down another 9% and bringing this week's selloff to 44%, after the data center company lost its second auditor in less than two years.The company's shares fell as low as $26.23, wiping out all of the gains for 2024. Shares had peaked at $118.81 in Mar ...

In my last piece on Super Micro Computer, Inc. (NASDAQ: SMCI ) I suggested that the SMCI had a favorable risk/reward relationship and that the technical picture of Super Micro looked compelling for investors with a contrarian bent.A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and ...

The only thing that can be assured about Super Micro Computer's NASDAQ: SMCI share price is that volatility will dominate the market for the foreseeable future. The second resignation of external auditors Ernst & Young in 18 months highlights risks first brought to light by former employee Bob Luong. The company’s results and demand for its products suggest the risks are limited, but uncertainties remain that will keep downward pressure on the stock price for the foreseeable future. The primary hurdle for t ...

Super Micro Computer stock investors can't seem to catch a break.In this video, I will cover the recent updates regarding Super Micro Computer (SMCI -11.97%). Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Oct. 30, 2024. The video was published on Oct. 31, 2024. ...