The server specialist Super Micro Computer, considered one of the major beneficiaries of the current AI boom, is facing serious allegations. Short seller Hindenburg Research published an extensive report on Tuesday, accusing the company of, among other things, financial manipulation, questionable transactions with affiliated companies, and circumventing US sanctions.
Hindenburg Research, known for its astute analyses and revelations, simultaneously announced that it has taken a short position in Super Micro Computer. The report is based on a three-month investigation, which included interviews with former employees. Numerous accounting irregularities and opaque business relationships with affiliated companies were uncovered.
A central allegation concerns the so-called "Related-Party Transactions," where business is conducted with companies run by family members of Super Micro CEO Charles Liang. According to Hindenburg Research, these transactions could have been used to artificially inflate revenues and profit margins.
Additionally, Hindenburg claims that Super Micro Computer evaded US sanctions by exporting high-tech components to Russia through shell companies in Turkey and Hong Kong. This has led to a tripling of exports to Russia since the beginning of the Ukraine war.
Another issue addressed in the report concerns the quality of Super Micro's products. Several former customers, including Tesla and Elon Musk's XAI, have turned away from Super Micro due to quality problems and have instead signed contracts with competitors like Dell.
The publication of the report led to a significant decline in Super Micro Computer's stock on Tuesday. In official NASDAQ trading, the stock lost 2.64 percent and fell to $547.64. At times, it even dropped by 8.7 percent to $513.50. The downward trend continued in pre-market trading.
Despite the recent turbulence, Super Micro's stock has still achieved a positive performance of 92.65 percent so far this year, but it has been under pressure for several weeks.
With these serious allegations, Super Micro Computer faces a significant challenge, both in terms of investor trust and the further development of the company in an increasingly competitive market environment.
