The Super Micro Computer logo is pictured at one of the world’s largest computer and technology trade shows.
Ann Vuong | Reuters
Hindenburg Research on Tuesday disclosed a short position in Microcomputer and allegations of “accounting manipulation” at an AI server maker, the latest short-seller-led scandal to rock several major companies.
The report compares the short seller, who has battled billionaire investor Carl Icahn and India’s Gautam Adani, to the server company, one of the biggest winners in the artificial intelligence craze.
Shares of Super Micro fell 3.5% in morning trading. The stock has nearly doubled by 2024, after more than tripling last year.
Hindenburg said it found evidence of undisclosed related-party transactions and noncompliance with export controls, among other issues, citing an investigation that included interviews with former senior employees and litigation records.
“The company (Super Micro) benefits from being an early mover but still faces significant accounting, governance and compliance issues, and offers inferior products and services that are now overshadowed by stronger competition,” Hindenburg said in its report.
Super Micro did not immediately respond to a request for comment. Reuters was unable to independently verify the claims in the Hindenburg report.
A close relationship with chip giant Nvidia has allowed Super Micro, known for its liquid cooling technology for high-power semiconductors, to capitalize on the surge in demand for AI servers.
Despite the surge in revenue, margins have been hit recently by rising server manufacturing costs and pricing pressure from competitors including Dell.
Analysts have flagged the company’s massive spending on supporting a new generation of AI chips, including those sold by Nvidia.
The company’s shares have also been under pressure in recent months amid growing concerns that Big Tech could cut back on AI spending due to slow recovery of the billions of dollars it is investing in the technology.
