Super Micro, Once the Hottest AI Stock of 2024, Has Crashed 💥

What we’re showing

This graphic covers Super Micro Computer Inc.’s massive rise and fall in 2024. 

The company is a California-based server maker that sells solutions for cloud computing and artificial intelligence. It is a major vendor of Nvidia-based server clusters and has supplied major customers like Tesla. 

Key takeaway

Super Micro (Ticker: SMCI), once a leading stock in the AI-hype rally, has seen roughly $50 billion wiped out from its valuation in 2024. The stock is now back to where it started at the beginning of the year, and could fall even lower…

Ernst & Young resigns as Super Micro’s auditor

The latest blow to Super Micro is the resignation of its auditor, EY. The accounting firm stated it was “unwilling to be associated with the financial statements prepared by management”.

Interestingly, EY had only just replaced Deloitte as Super Micro’s auditor in March 2023.

A dubious track record

The resignation of its auditor sheds light on Super Micro’s internal issues. 

For example, an Aug. 2024 report by Hindenburg Research uncovered “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.”

What’s next?

Super Micro must find itself a new auditor to stay compliant with Nasdaq, or it could be delisted.