Super Micro Computer(US:SMCI) The Motley Foolยท2024-12-21 23:53Core Viewpoint - Super Micro Computer's stock experienced a significant decline of 13.3% over the last week, influenced by Federal Reserve interest rate news and ongoing investigations related to Nvidia's GPUs [1][2][4]. Group 1: Federal Reserve Interest Rate Impact - The Federal Reserve cut the benchmark interest rate by 25 basis points to 4.25%, down from a high of 5.25% established in July 2023 [3]. - The Fed's revised outlook now anticipates only two rate cuts in 2025, down from the previously expected four, leading to increased sell-offs in growth-dependent stocks like Supermicro [4]. - Supermicro's share price fell as much as 16.3% during the week following the Fed's announcement, although it saw some recovery [4]. Group 2: Nvidia and Export Investigations - The U.S. Department of Commerce is investigating how Nvidia's advanced GPUs for AI applications ended up in China, amid rising tensions and export bans [5]. - Nvidia has requested major server companies, including Super Micro Computer, to investigate potential pass-through sales from Southeast Asia, which could pose risks for Supermicro [6]. - There are rumors that China may have accessed Nvidia's processors through Supermicro's servers, and the U.S. Department of Justice has opened a probe into Supermicro, potentially related to accounting irregularities or export ban breaches [10]. Group 3: Financial Reporting and Market Reactions - Supermicro plans to file its delayed 10-K report by February 25, with market reactions hinging on whether the report requires substantial restatements of previously filed financial results [7]. - A clean report could lead to a significant increase in share price, while substantial downward revisions could result in a sharp decline [7].