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Hindenburg Research has targeted Super Micro Computer, Inc. (Nasdaq: SMCI) in its latest report, alleging serious accounting manipulation and related party transactions. Following the announcement, Super Micro’s stock fell by approximately 8% during day trading, reaching a low of $513.66 before recovering slightly. As of 12:36 PM ET on August 27, 2024, the stock is trading at $554.09, down $8.42 or 1.50% for the day.
The report details a three-month investigation revealing “accounting red flags” and evidence of undisclosed transactions involving Super Micro’s CEO Charles Liang and his family members. Hindenburg claims that over the past three years, two related party suppliers have received nearly $983 million from Super Micro, raising concerns about circular transactions and potential conflicts of interest.
Despite the initial drop, the stock showed resilience, recovering from its day low. Super Micro’s market capitalization stands at approximately $32.4 billion, reflecting its significant position in the tech industry, particularly as a key player in the AI server market.
Today’s trading range for Super Micro has been between $556.9999 and $513.66, illustrating the volatility triggered by the Hindenburg report.
Hindenburg’s allegations come at a time when Super Micro has seen substantial growth, nearly doubling its stock price this year, largely driven by demand for AI technology. However, the report raises questions about the company’s governance and compliance, suggesting that the issues highlighted could impact its future performance.