Hindenburg Research announced a short position in Super Micro Computer on Tuesday, accusing the AI server maker of “accounting manipulation.” The short seller, known for its impactful reports on high-profile companies, now targets Super Micro, a significant player in the generative AI boom.
The report alleges undisclosed related party transactions and export control violations, based on an investigation that included interviews with former senior employees and litigation records. Shares of Super Micro fell 3.5% in morning trading following the disclosure. The stock had nearly doubled in 2024 after more than tripling the previous year.
Hindenburg claims that despite Super Micro’s early success, the company now faces significant accounting, governance, and compliance challenges, along with declining product quality due to increasing competition.
Super Micro, closely linked to chip giant Nvidia and recognized for its liquid cooling technology for high-power semiconductors, has seen a revenue surge, though margins have been pressured by rising production costs and competition from rivals like Dell.
The company’s shares have also been under pressure from concerns that Big Tech could reduce AI spending due to slower-than-expected returns on their substantial investments in the technology. Super Micro did not immediately respond to requests for comment, and Reuters has not independently verified the allegations in Hindenburg’s report.
