[News] Supermicro Faces Order Withdrawal Crisis, Potentially Benefiting Dell

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Supermicro Computer has reportedly been targeted by short-sellers and questioned over alleged accounting manipulations, leading to a delay in filing its 2024 10-K annual report and causing market unease.

On August 27, Hindenburg Research, a short-selling company known for targeting major entities like India’s Adani, Nikola, Lordstown, and fintech giant Block, released a report accusing Supermicro of accounting violations, inadequate disclosure of related party transactions, and evading sanctions by selling products to Russia.

At the moment following the release of Hindenburg’s report, Supermicro also announced a delay in submitting its 2024 fiscal year 10-K annual report, citing the need for more time to assess the design of internal controls and operational effectiveness. This move has further heightened market concerns about Supermicro.

Moreover, Hindenburg also raised concerns about the quality of Supermicro’s products and services, suggesting that competitors like Dell might capitalize on Supermicro’s lost orders.

According to a report from Barron’s citing Evercore ISI analyst Amit Daryanani’s report, it’s highlighted that Supermicro is facing a risk of customer order withdrawals.

Supermicro, on the other hand, didn’t immediately respond to a request for comment about the delay in filing the annual report.

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(Photo credit: Supermicro)