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Hindenburg Research has reported a short position in Super Micro Computer, a major AI server manufacturer.
Hindenburg Research, known for its impactful short-selling reports, has disclosed a short position in Super Micro Computer, a leading AI server maker. In a report released on Tuesday, Hindenburg accused the company of “accounting manipulation” and highlighted several other alleged issues.
Hindenburg’s report claims that Super Micro engaged in undisclosed related party transactions that failed to comply with export controls and have faced governance and compliance challenges. The report is based on an investigation that included interviews with former senior employees and a review of litigation records.
As a result of these allegations, Super Micro’s shares fell by 3.5% in morning trading. This drop follows a significant surge in the company’s stock, which has nearly doubled in 2024 after more than tripling last year.
Super Micro has benefited greatly from the generative AI boom, largely due to its close relationship with Nvidia and its early adoption of liquid cooling technology for high-power semiconductors. However, despite the rise in revenue, the company has faced pressure on its margins due to increased production costs and pricing competition from rivals like Dell.
Analysts have also noted the company’s substantial investment in supporting new AI chips, including those from Nvidia. However, there are growing concerns that major technology companies might reduce their AI spending due to slower-than-expected investment returns.
Super Micro has not yet responded to Hindenburg’s allegations, and the claims have not been independently verified by Reuters. The situation has overshadowed the company’s recent successes and could have implications for its future in the competitive AI server market.
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