Super Micro Computer loses over 40% of value after short-seller report
Super Micro Computer, one of the biggest beneficiaries of the AI infrastructure boom, saw its stock crater after short-seller Hindenburg Research published a damning report alleging accounting irregularities, undisclosed related-party transactions, and potential export control violations.
What Hindenburg found, and why it mattered
Hindenburg Research published its report on August 27, 2024. The firm described Super Micro’s financial practices as having “glaring accounting red flags.”
The specific allegations were serious. Hindenburg pointed to accounting discrepancies, related-party transactions the company allegedly failed to disclose, and potential violations of export controls tied to shipments to Russia.
The stock dropped more than 30% in the immediate aftermath.
The company was previously delisted from Nasdaq back in 2018 because it couldn’t file its financial statements on time.
The damage kept compounding
In June 2026, SMCI announced plans to raise $7 billion through equity-related financing. The stated purpose was to support its substantial AI server orders. The stock dropped 13% in a single day on that announcement alone.
As of late May 2026, short interest in SMCI sat at approximately 74.5 million shares. That represented about 14.76% of the company’s float.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cardano Foundation unveils zero-knowledge series as ADA drops 2.8% to $0.1725
How much CPO demand will Nvidia Rubin Ultra generate? Bernstein: Optical value per Pod will increase fivefold
Bernstein believes that the co-packaged optics (CPO) and fiber demand driven by Nvidia's Rubin Ultra architecture will surge significantly, with the optical content per Pod rising from $1 million to $5.4 million. This will propel the size of Nvidia's optical ecosystem market to $46.8 billion by 2028 (a 91% annual increase). Although the industry faces supply bottlenecks with InP substrates, the outlook remains positive. The institution reiterates its “outperform” rating for Lumentum, Coherent, and Ciena.
UBS Q3 implements a two-way strategy with gold options, heavily invests in technology stocks, and builds positions in SK Hynix (SKHY.US)
UBS Group (UBS.US) has submitted its Q3 holdings report (13F) as of September 30, 2026.
SpaceX (SPCX.US) reportedly attempts “de-Nvidiaization” at the rack level: developing Kessel cabinets to bypass L6 compute boards, purchasing only chips
SemiAnalysis: SpaceX has developed its own Kessel cabinet, bypassing Nvidia's L6 cards to provide more options for manufacturing its own hardware.
Crypto prices
More
