Short Seller Hindenburg Challenges

Super Micro’s Claims on AI Server Business

 

 

 

 Hindenburg’s Allegations

 

Super Micro Computer (SMCI.O), a leading producer of AI servers, strongly denied the accusations made by short seller Hindenburg Research in a recent report. The company described the study as containing “false or inaccurate statements.”

Super Micro said the report included “misleading presentations of information” that the company had already shared publicly. Although it did not give specific details, Super Micro promised to address the claims “in due course.” Following the announcement, its shares rose by more than 2% in early trading.

Hindenburg’s Short Position and Allegations

Hindenburg revealed a short position in Super Micro and accused the company of “accounting manipulation.” The report cited evidence of undisclosed related-party transactions and violations of export regulations.

After the report, Super Micro’s shares dropped almost 19%. The company announced it would review “internal controls over financial reporting” and delayed filing its annual report, which came just a day after Hindenburg’s accusations.

Background and Investigation by Hindenburg

Hindenburg, known for legal battles with India’s Gautam Adani and billionaire Carl Icahn, conducted a three-month investigation into Super Micro. The inquiry involved interviews with former senior employees and reviews of court documents.

Despite the delayed annual report, Super Micro reassured investors that it does not expect any material changes to its fiscal year or fourth-quarter financial results.

CEO’s Assurance on Production and Operations

CEO Charles Liang emphasized that the company’s products and delivery capacity remain unaffected by the controversy. He stated, “Our production capabilities continue to operate at pace to meet customer demand.” This statement aimed to calm concerns about potential disruptions in Super Micro’s AI server business.

 

 

Hindenburg short seller claims against Super Micro AI servers