Super Micro Faces Potential Delisting, S&P 500 Removal Amid Auditor Woes
- Company is due to provide a business update after market close
- Stock is down more than 75% from March high as filings delayed
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Super Micro Computer Inc. started the year as a hot artificial intelligence trade. But just eight months after shares hit a record high, investors are asking whether the server maker will be delisted by Nasdaq Inc. and booted from the S&P 500.
The troubled firm — which has seen shares plummet more than 75% since March — is due to give a business update on Tuesday after the close. Top of mind is what it says about meeting Nasdaq Inc.’s compliance obligations following the resignation of auditor Ernst & Young LLP last week. The auditor cited concerns about Super Micro’s commitment to integrity and ethics — a blow that follows a US Department of Justice probe and a damaging short-seller report earlier this year.