Super Micro Computer (SMCI) stock fell about 2% Tuesday following a report from short seller Hindenburg Research claiming, among other things, "accounting manipulation" at the AI high flyer. Super Micro stock had fallen as much as 8% in premarket trade following headlines about the report.
Hindenburg Research said its three-month investigation "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." The firm disclosed Tuesday that it had taken a short position in Super Micro.
The maker of data center servers and management software captured the attention of investors this year as it rode the AI wave. The company buys components from AI chipmaker Nvidia (NVDA).
Super Micro shares soared from $290 in early January to north of $1200 by March. The stock is off about 50% from its March peak but is still up 90% year to date. The company recently announced a 10-for-1 stock split effective Oct. 1.
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