According to a Digitimes article posted on Monday, Nvidia (NASDAQ:NVDA) is said to be routing orders originally placed with Super Micro Computer (NASDAQ:SMCI) to other vendors in order to minimize interruptions in the AI server supply chain. This change seeks to steady Nvidia’s activities in light of financial reporting difficulties at Super Micro, whose failure to submit its financials by Nov. 20 could cause delisting.
After auditor resignations and questions on its financial transparency, Super Micro has come under close examination. After Hindenburg Research published a brief analysis challenging the company’s accounting policies last week, the AI server provider saw its sharpest weekly stock loss on record at more than 45%. Super Micro then postponed its annual 10-K submission, saying it expects little change in its fiscal 2024 figures.
Despite Super Micro’s continuous financial difficulties, Nvidia is trying to maintain a consistent supply chain for the AI server market by rerouting orders to other suppliers. Early trading Monday saw Nvidia shares rise 1.69%; however, Super Micro’s stock remained erratic in light of recent events.
This article first appeared on GuruFocus.
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