[News] NVIDIA Rumored to Shift Supermicro Orders, Potentially Benefiting Taiwanese Suppliers

---

---

Supermicro, a major beneficiary of the AI boom, saw its stock plunge after Ernst & Young resigned as its auditor, raising market concerns. According to a report from Liberty Times, citing Chinese media outlet Cailian Press, NVIDIA, which has close ties to Supermicro, is shifting orders that were previously directed to Supermicro to other suppliers in order to avoid market disruptions.

According to the report, Supermicro’s competitors, GIGABYTE and ASRock, have benefited from the order transfer, seeing an increase in new orders and customer inquiries.

On October 30th, Supermicro announced that Ernst & Young, one of the Big Four accounting firms, had severed ties with the company. In its resignation letter, Ernst & Young stated that it was “unwilling to be associated with the financial statements prepared by management” and could “no longer rely on management’s and the Audit Committee’s representations” regarding their relationship with Supermicro.

The report noted that this statement caused Supermicro’s share price to drop sharply, plunging 32% that day. The company is now facing the risk of delisting.

Previously, on August 27, Supermicro was accused of accounting violations, inadequate disclosure of related party transactions, and evading sanctions by selling products to Russia by Hindenburg Research. The following day, Supermicro also announced a delay in submitting its 2024 fiscal year 10-K annual report.

According to a report from Wall Street Journal in late September, Supermicro was under the investigation of the U.S. Department of Justice.

The report from Liberty Times citing Cailian Press indicated that if the rumors about NVIDIA’s order transfer turn out to be true, it would undoubtedly be a further blow to the troubled firm.

Read more

• [News] Supermicro Denies Short-Selling Claims, as its CEO Responds for the First Time After the Controversy
• [News] Taiwanese Supply Chain to Benefit from Supermicro’s Order Withdrawal, with Dell and HP as Potential Beneficiaries

(Photo credit: Supermicro)