Super Micro's 10-K Slip-Up Wipes Out $800 Million From CEO's Fortune in Just 6 Hours

If you were planning to cash in on Super Micro Computer stock today, I hope you brought a parachute because that thing just plummeted faster than a lead balloon. 

The AI chip stack supplier's stock dropped a jaw-dropping 27%, shedding nearly $150 off its price in a single trading session. And no, it wasn’t because of some earnings disaster or NVIDIA ghosting them—this time, it’s because they decided to play hide-and-seek with their annual 10-K financial filing. 

In a statement that did little to calm the storm, Super Micro said they couldn’t file their annual report for the fiscal year ending June 30 "without unreasonable effort or expense." 

Translation: they’ve got some major issues with their internal controls over financial reporting, and they need more time to sort things out. For a company that’s been riding the AI wave, this is not the kind of news investors wanted to hear. And speaking of news, this delay comes hot on the heels of a blistering report from Hindenburg Research, the same folks who’ve made a name for themselves by sniffing out financial foul play.

Now, if that delay wasn’t enough to make investors jittery, let’s add a little Hindenburg Research drama to the mix. Just a day before this mess, they released a report accusing Super Micro of all sorts of financial misconduct—like poor accounting practices, undisclosed business deals, and who knows what else. The report was basically the financial equivalent of someone yelling “fire” in a crowded theater. And boy, did investors rush for the exits.

Hindenburg didn’t hold back, calling Super Micro a repeat offender when it comes to accounting mistakes. According to them, the company may have enjoyed early success in the AI game, but now it’s getting outclassed by more reliable competitors. They even pointed out that Super Micro had to pay a $17.5 million fine to the SEC for “widespread accounting violations.” If that’s not a huge warning sign, I don’t know what is.

By the end of the trading day, Super Micro’s stock was sitting at around $400—a far cry from its record high of $635 in March. That’s a 67% drop for those keeping score at home. And just to rub salt in the wound, this sharp decline dragged down other AI-related stocks like AMD and Dell, which saw modest losses of around 3%. 

Super Micro’s attempt to reassure investors didn’t really help either. They were quick to point out that the delay doesn’t mean they’re changing their financial results or outlook. But when a stock loses almost a third of its value in a single day, saying “everything’s fine” just doesn’t cut it.

So, where does Super Micro go from here? Well, for one, they better get that 10-K report sorted out, and fast. Investors will be watching closely to see if there’s more to this delay than meets the eye. And with the Hindenburg report hanging over their heads like a dark cloud, the company’s got some serious PR work to do.

In the meantime, Super Micro’s CEO, Charles Liang, might want to rethink his stress management strategy—maybe trade those board meetings for a few rounds in a rage room or a weekend bender in Vegas. After watching his net worth vaporize by nearly $800 million in just one day, he could probably use a little more tequila and a lot less balance sheets. Who knows, maybe a night at the blackjack table would be less nerve-wracking than watching his stock price free-fall.

(Source: New York Post)

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