Supermicro Crashes On Report Of Justice Department Probe

Supermicro (SMCI) crashed Thursday on a report that the Justice Department is investigating the server maker for alleged accounting irregularities. SMCI stock was down well more than 10% in early afternoon trading.

The DOJ is probing Super Micro Computer after an activist short-selling firm published a report critical of the company, The Wall Street Journal reported, citing unnamed sources.

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Supermicro stock fell after a Hindenburg Research report in August accusing Supermicro of accounting manipulation, export control failures, customer issues and other problems.

Shares dropped again after the AI server maker delayed the filing of its annual report with the Securities and Exchange Commission.

Supermicro said it needed more time “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting” for the fiscal year ended June 30.

Supermicro stock fell 14.4% to 392.18 on Thursday, hitting an eight-month low intraday. The stock has shed more than 30% since late August.

Supermicro stock’s Relative Strength Rating has taken a heavy beating. The RS Rating tumbled from a perfect 99 three months ago to 27, according to MarketSurge.

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