Nvidia Causes Restructuring at Super Micro – Stocks Volatile

The market for AI servers is experiencing turbulent times: Server manufacturer Super Micro Computer is under renewed pressure as last week's news of their auditor's resignation continues to have an impact. An additional component is a new article from Asia reporting that technology giant Nvidia is pushing forward the reorganization of Super Micro orders, thereby reshaping the AI supply chain. Super Micro's stock price fell by more than 8% on Monday morning but later rebounded by 4%. The Asian news source DigiTimes Asia reveals that Asian server manufacturers like Gigabyte and ASRock are benefiting from redirected Super Micro orders and have been able to secure contracts with the major generative AI provider Coreweave. Last week, Super Micro published the resignation notice of Ernst & Young (EY), their previous auditor. EY justified the exit due to concerns regarding governance, transparency, and internal controls. Doubts were raised about whether the company adheres to ethical standards and follows the principles of the COSO framework. Additionally, EY stated that they could no longer rely on the representations of the company’s management or be associated with the financial statements due to newly discovered facts. The stock had already suffered significantly last week from a report by Hindenburg Research and fell by 47% following the EY news. Nvidia, on the other hand, remains silent on the issues at Super Micro. A spokesperson declined to comment. Analyst Jordan Klein from Mizuho highlights Dell Technologies as a potential beneficiary of Super Micro's difficulties. In his opinion, there could soon be signals from Dell regarding increasing demand and an expansion of the order book due to the problems at Super Micro.