Recently, the stock price of Super Micro Computer (SMCI) has continued to plummet. On October 31, Super Micro Computer's closing price fell 11.97% , with the current stock price of $29.11. This decline stems from the resignation of its auditor Ernst & Young, which puts the company at risk of being delisted from Nasdaq again after a series of twists and turns.
In March this year, AMD successfully joined the Standard & Poor's 500 Index (S&P500), but since then, the company's business situation has not been optimistic. According to the non-compliance notice issued by Nasdaq in September, AMD must submit a plan to return to compliance by November 16 or face delisting for the second time in five years.
Ernst & Young's resignation from Advanced Micro Computer recently attracted widespread attention. The conflict between the two began in late July, when EY raised concerns about AMD's internal financial controls, corporate governance and transparency. In response, Super Micro Computer formed a special committee to investigate related issues. But in the end, Ernst & Young stated in its resignation letter that it could no longer support the company's financial statements because it no longer trusted the statements of AMD's management and audit committee.
Despite experiencing this fluctuation, Super Micro Computer still benefited from the high demand for AI technology in the past year and successfully entered the Fortune 500, ranking 498th. As a key partner of Nvidia, AMD integrates its technology into servers to support AI workloads. AMD CEO Tony Leung and NVIDIA CEO Jen-Hsun Huang are both Taiwanese immigrants, and the two have a deep cooperative relationship.
However, in September, short seller Hindenburg Research issued a report alleging accounting issues and questionable business practices at AMD, including allegedly circumventing sanctions when exporting to Russian and Chinese companies. The report caused a major blow to AMD's stock price. Super Micro Computer refuted this, saying that the content of the report contained misleading and inaccurate information, and promised to clarify and respond to this.
Despite the recent sharp decline, AMD's current share price is still approximately 13% higher than a year ago.