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Editor’s note: The headline has been updated to more accurately reflect the content of the article.
Super Micro Computer Inc (NASDAQ:SMCI) is teetering on the brink of a dramatic turnaround. Once a favorite of Nvidia CorpThe server maker’s (NASDAQ:NVDA) AI-driven success is now grappling with a slew of issues that could determine its survival.
As Super Micro hurtles toward a Nasdaq delisting deadline, all eyes are on Nvidia’s earnings next week to gauge whether Super Micro can steady its ship — or sink further into the abyss.
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Supermicro’s close ties with Nvidia have been both a blessing and a curse.
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Nvidia’s dominance in AI chip innovation fueled a meteoric rise in SMCI stock, especially during the first quarter, but that relationship is now under scrutiny.
Recent rumors suggest that Nvidia is diversifying its partnerships and is reportedly redirecting orders from Super Micro to other server suppliers. While Nvidia has not officially confirmed these moves, the implications are clear: reputational and operational risks associated with Super Micro’s ongoing crises could be too great for Nvidia to handle.
Nvidia’s earnings call on November 20 could be the turning point for investors in SMCI stock. If Nvidia acknowledges its cooling stance on Super Micro, the already battered stock could face another wave of sell-off.
On the other hand, silence on the matter could offer Super Micro a temporary reprieve.
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Super Micro’s problems don’t end with Nvidia. The company is racing against a Nov. 16 Nasdaq deadline to resolve its backlog of SEC filings, a fallout from the ongoing accounting fiasco sparked by Hindenburg Research’s scathing short report.
