2024-09-26 19:07:00
Super Micro Computer shares fell 11% on the New York Stock Exchange this Thursday after learning that the US Department of Justice has opened an investigation into the company. The chip and computer equipment manufacturer, along with Nvidia, has been one of the biggest beneficiaries of the rise of artificial intelligence. The company’s shares have gained 57% over the past 12 months and have accumulated a 1,950% gain over the past five years.
The investigation shows the newspaper Wall Street Journalwhich comes a month after the Hindenburg Research research published a a disastrous report on the veracity of the firm’s accounts. In particular, the investigation shows that the firm, which has been listed on the Stock Exchange since 2007, has committed significant accounting irregularities in relation to operations with unregistered third parties, failures in export control and problems with clients. This has already led to Super Micro titles losing more than 25% of their value at the end of August, their worst day since March 2020.
According to the US newspaper, the US prosecutor’s office has already requested information from a former employee who previously accused Super Micro of violations of accounting regulations.
This is not the company’s first problem with market regulators. In 2020, Super Micro paid $17.5 million to settle allegations by the US Securities and Exchange Commission (SEC) of widespread accounting violations, although it did not admit to any of the allegations.
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