Investing.com — AI server maker Super Micro Computer Inc (NASDAQ:SMCI) is volatile again on Monday as the company continues to suffer from last week’s news that its accountant is resigning. Adding to the current volatility is an article from Asia in which NVIDIA Corporation (NASDAQ:NVDA) steps in to restructure Super Micro orders to reshape the AI supply chain.
After falling more than 8% early Monday, the stock last rose 4%.
According to DigiTimes Asia, supply chain sources indicate that Asia-based server ODMs Gigabyte and ASRock have benefited from diverted SMCI orders, securing contracts with major generative AI computing vendor Coreweave.
Last week, Super Micro announced that Ernst&Young (EY) resigned as its auditor, citing concerns about governance, transparency and internal control. EY questioned whether the company maintained ethical standards, complied with the COSO Framework principles and had an independent oversight body. In its resignation letter, EY stated that it could no longer rely on management’s statements or associate itself with the company’s financial statements due to recently exposed issues.
The stock, which was already on the back foot after a short report from Hindenburg Research in August, fell 47% last week after the auditor’s news.
NVIDIA, for its part, is not talking about Super Micro’s woes. “We decline comment,” an NVIDIA spokesperson responded when Investing.com reached out last week for comment on the Super Micro situation.
Mizuho agency analyst Jordan Klein has put Dell Technologies Inc (NYSE:DELL) on the table as the beneficiary of Super Micro’s woes.
“It may take some time, but my call will be sooner or later. You are starting to hear from DELL about demand and order book expansion related to SMCI overhang issues,” Klein said Monday in a note to customers about his long Dell -conversation.
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