Supermicro finds a new auditor – shares soar by a third

Supermicro took the first steps to resolve the difficult situation in which it found itself. According to DigiTimes, BDO has agreed to become the new auditor. Along the way, the company presented Nasdaq with a comprehensive plan to bring its reporting into compliance with the rules of the exchange.

BDO will replace Ernst&Young LLP, which previously refused to audit Supermicri, as a result of which the latter’s share price literally collapsed. With the arrival of BDO, the risk of Supermicro being delisted from the Nasdaq exchange was significantly reduced, which caused a rapid recovery in the company’s market capitalization, and supply chain businesses were finally able to adjust their forecasts for the better. The company’s share price increased by 29%.

Previously, industry experts predicted that the delisting of Supermicro would prevent the company from raising new capital (not to mention the need to pay off debt on bonds) – at the same time, the manufacturer vitally needs investments in the purchase of components, expansion of production, etc. Leaving Nasdaq could seriously affect its competitiveness.

Image Source: Adeolu Eletu/unsplash.com

The other day it was reported that Supermicro had already lost an order from YTL Group (YTLP) for the supply of NVIDIA GB200 NVL72 super accelerators for one of the largest AI supercomputers in Southeast Asia, which went entirely to Wiwynn (Wistron). There was also information that Dell had taken away a large order from Supermicro for AI servers for Elon Musk’s xAI startup, for which Supermicro had already built the Colossus AI cluster.

The crisis has now been temporarily resolved. However, an investigation by the US Department of Justice was initiated against the company after the publication of a devastating report from Hindenburg Research. As the company returns to normal operations, its industry peers are expected to face fierce competition from Supermicro.

Component suppliers, including Kaori, Leadtek, Auras Technology and Nidec, whose business largely depends on Supermicro, are also showing satisfaction with the change. Now they claim that the company has proven its reliability and fulfills its financial obligations. It is also expected that the manufacturer’s interest in life-supporting liquids will stimulate the development of the corresponding production segment.