Super Micro Shares Plunge After Filing Delay, Hindenburg Report

Shares of Super Micro Computer tumbled by over 23% on Wednesday following the company's announcement that it would not be filing its annual report for the fiscal year with the US Securities and Exchange Commission on time.

The company cited the need for additional time to complete its assessment of internal controls over financial reporting as the reason for the delay. Super Micro, which specialises in server technology used by major AI players like Nvidia, AMD and Intel, has seen its stock price climb over 47% year-to-date. However, investors were shaken on Tuesday after Hindenburg Research revealed a short position in the company, alleging "fresh evidence of accounting manipulation".

Hindenburg's report, which CNBC was unable to independently verify, claims to have identified potential accounting irregularities. It remains unclear whether the delay in Super Micro's annual report is connected to these allegations.

Analysts at JPMorgan have expressed doubts about the validity of some of Hindenburg's claims, considering the report "largely void of details around alleged wrongdoings from the company".

Despite this, the analysts acknowledge that Super Micro needs to improve its investor communication and transparency, particularly given its rapid growth fuelled by demand for AI servers. They suggest that while the report lacks concrete evidence of accounting misconduct, there is limited information regarding the company's existing business relationships with entities owned by the founder's siblings.

The dramatic stock decline highlights the sensitivity surrounding Super Micro's financial reporting and its potential exposure to accusations of accounting irregularities. It remains to be seen how the company will address the allegations raised by Hindenburg and the concerns expressed by investors regarding its transparency and governance.