Shares of Nvidia (NVDA, Financials) fell 4% by noon Thursday, as partner Super Microcomputer (SMCI, Financials) shares fell 14%, citing challenges in the artificial intelligence market and recent changes in auditors. Among them, Super Micro’s rise since the beginning of the year was erased.
Supermicro stock has risen to $28.43 since the beginning of the year and as high as $118.81 in March, but fell to $27.43 at lunchtime, a reversal from past performance.
A number of events in late 2024 led to Supermicro’s decline, including the resignation of Ernst & Young LLP’s auditor, which arrived just weeks before Supermicro was due to file with the Nasdaq and the Securities and Exchange Commission. Super Micro has also been criticized for the longevity of its direct liquid cooling system, which was brought up during its recent earnings call. CEO Charles Liang did not provide a direct answer.
Super Micro continues to work with Nvidia to build AI infrastructure such as generative artificial intelligence SuperCluster and Omniverse, but auditor resignation and filing delays raise further doubts about the company’s financial health . Although Nvidia’s stock price has fallen, the company’s business is largely unaffected by Super Micro’s current problems.
As Supermicro prepares to release third-quarter results, investors remain cautious given increased market volatility and potential changes to financial disclosures that could impact future earnings forecasts. are.
.
This article first appeared on GuruFocus.
