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- Super Micro Computer faces significant risks, including auditor Ernst & Young’s resignation, DOJ investigation, and potential Nasdaq delisting due to missed 10K filing deadlines.
- Despite some positive Q1 results, concerns over governance, questionable working capital developments, and decelerating growth make SMCI uncompelling at this time.
- The resignation of Ernst & Young and historical precedents suggest difficulty in finding a new auditor, further jeopardizing SMCI’s Nasdaq listing status.
- Technical analysis indicates a cautious outlook, with critical support at $23; failure to maintain this could signal the market believes delisting risks are valid.
Super Micro Computer (NASDAQ:SMCI) (NEOE:SMCI:CA), a leading liquid-cooled server technology company, has seen its shares fall in recent weeks as uncertainty has arisen over the company’s ability to remain listed on the Nasdaq due to, among.
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