The latest move by the short seller whose reports have shaken several high-profile firms, Hindenburg Research revealed on Tuesday a short position in Super Micro Computer and accused “accounting manipulation” at the developer of AI servers.
The short seller, who has battled with billionaire investor Carl Icahn and Indian businessman Gautam Adani, is pitted against the server marker in this study, which has been among the largest beneficiaries of the generative artificial intelligence boom.
In early trading, Super Micro’s stock fell 3.5%. Following a more than threefold increase in 2024, the stock has virtually doubled.
Hindenburg highlighted a probe that included interviews with former top employees and litigation documents, saying it uncovered evidence of concealed related party transactions and failure to adhere by export regulations, among other concerns.
“It (Super Micro) benefited as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded by more credible competition,” Hindenburg said in its report.
An inquiry for comment was not immediately answered by Super Micro. The assertions made in the Hindenburg report could not be independently confirmed by Reuters.
Super Micro, renowned for its liquid cooling expertise for high-power semiconductors, has been able to profit from the spike in demand for AI servers thanks to close ties with chip giant Nvidia.
Despite a spike in revenue, recent pressure on margins has come from rivals like Dell and the increased cost of producing servers.
The company’s large expenditure on supporting the next generation of AI chips, notably those marketed by Nvidia, has drawn criticism from analysts.
In recent months, the business’s shares have also experienced pressure from growing concerns that Big Tech may reduce its expenditure on AI due to the technology’s sluggish payoffs, despite the company investing billions of dollars in it.
