Super Micro Falls as Hindenburg Takes Aim With Short Report
- Accusations focus on accounting practices, transactions
- The maker of servers has been a winner of the AI trade
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Super Micro Computer Inc. shares fell on Tuesday after Hindenburg Research said it’s short the maker of server equipment, which became a tech-market darling as a major beneficiary of the boom in artificial intelligence.
The stock fell as much as 8.7% after Hindenburg Research’s report, though it pared much of that decline and closed down 2.6%. Hindenburg, the firm run by Nate Anderson, wrote that an investigation into the company revealed “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” Super Micro’s convertible debt also dropped on the news.