Super Micro Computer Inc (SMCI) News

https://orcafin.beehiiv.com/p/smci-an-intriguing-story

<< The last time $SMCI was delisted only took 24 hours to make a decision. >>

That is a completely false narrative.

The last time, SMCI didn't report financials for about a year (between Nov 2017 and Aug 2018) and they had received 7 Notices of Delisting before they were finally delisted.

The NASDAQ has 45 days to review and respond to Super Micro Computer's (SMCI) compliance plan. SMCI will remain listed on the exchange while NASDAQ reviews it. If NASDAQ doesn't accept the plan, SMCI has the opportunity to appeal the decision, which would extend the process further.

https://www.zacks.com/stock/news/2373023/this-is-why-smci-stock-bounced-back-and-why-its-time-to-buy

Too big to fail.

https://www.cfobrew.com/stories/2024/08/27/ey-drops-clients-to-improve-audits-after-leading-big-four-in-deficiencies#

https://www.cfobrew.com/stories/2024/08/27/ey-drops-clients-to-improve-audits-after-leading-big-four-in-deficiencies#

https://finance.yahoo.com/news/super-micro-computer-inc-nasdaq-210500690.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAI3FSy_wIWFCAEhf2O5o4qWSWXvotYUD29m8tfsRMnvzpxlf_mo5kEewF88EDXq-laYXk9Tj1ZVy16H7XkBbbNXchp2wJjOK25Ir0wdCn5M3_-Tpt7ZcI0r6_HzI3ObcIIbeWjtAy1lDNYyd640IyQU-EkrIu5QtTBmgAd3_8R7X

Ray Dalio arguably the best investor on the planet behind buffet was buying SMCI after the Hindenburg report and after the EY resignation, he bought 1.5 million shares between 42-46 dollars , if it’s good enough for Ray Dalio it’s good enough for me. Good night you all. Don't listen to me or the known baby puts or baby shorts that have an agenda, just don't buy and wait it out until extension is given, that is what I am waiting for too, to go big. Not much left until extension or OTC, time is on my side. One thing is clear, SMCI is innocent until proven guilty, for me personally would love to see Charlie step down after all the issues have subsided, if the numbers are not cooked, then Charlie will get his redemption. Above all, I would love to see stock buy back between now and before the audit report.
Bullish

Not only customers and partners are abandoning $SMCI, but now its Taiwanese lenders are (reasonably) becoming very nervous as you can read in today's 8-K

Everyone is innocent until proven guilty. DOJ will determine their fate and so will SEC. So we now watch how the fire will grow or it will be extinguished.

Accounting Flames Threaten to Burn Down The AI Bubble

(Published by The Coastal Journal Nov 18, 2024)

In Backdraft, Robert De Niro’s fire investigator chillingly explains that fire is not just a chemical reaction but a living, breathing entity: “It's a living thing. It breathes, it eats, and it hates. The only way to beat it is to think like it. To know that this flame will spread this way across the door and up across the ceiling, not because of the physics of flammable liquids, but because it wants to. Some guys on this job, the fire owns them, makes 'em fight it on it's level, but the only way to truly kill it is to love it a little.



This same approach applies to understanding financial statements and corporate accounting, where flames of fraud can smolder unseen before erupting into a full-blown disaster. Recent developments at Supermicro and AMD reveal a dangerous combination of smoke and fire, hinting that the AI chip market’s towering house of cards may soon come burning down.

Supermicro: History of Leaving Investors with 3 degree Burns

Supermicro’s history is a catalog of financial fires. In 2018, the SEC charged the company with “widespread accounting violations,” accusing it of channel stuffing, premature revenue recognition, and altering shipment terms to artificially inflate revenue. The allegations culminated in Supermicro being delisted from Nasdaq for failing to file financial reports for two consecutive years. Though it clawed its way back to compliance in 2020, these fires have left investors with 3 degree burns that have now led lawsuits against the company.

Today, those embers are flaring up again. In late October 2024, Supermicro’s auditor, Ernst & Young (EY), abruptly resigned, citing governance failures and an inability to rely on the company’s management. This sudden resignation sent a clear signal that the fire behind closed doors was no longer containable. Adding to the heat, Supermicro has failed to file its annual 10-K report back in June, an omission that leaves investors burned again to the company’s financial reality. Without the rigor of third-party audits, its unaudited 10-Q filings are the equivalent of smoke alarms blaring without firefighters in sight.

The numbers are no less incendiary. Supermicro last reported a staggering 373% increase in net income, climbing to $402 million despite no new product announcements or transformative market shifts. Simultaneously, its inventory numbers do not add up, accounts receivable burned to -$500 million, and free cash flow fell to -$525 million. Negative figures of this magnitude in key financial metrics are not just anomalies—they are arson-level warning signs. These distortions suggest Supermicro might be fanning the flames of its growth narrative with aggressive accounting practices.



Then there’s the matter of Ablecom, a supplier owned by the CEO’s brothers. Ablecom now accounts for 70% of Supermicro’s purchases, raising the risk of undisclosed related-party transactions and revenue manipulation. A $162.1 million surge in orders to Ablecom intensifies these concerns, highlighting how concentrated supplier relationships can mask deeper vulnerabilities. With Ablecom as the sole supplier of chassis—a critical server component—any disruption in their operations could ignite a financial inferno, paralyzing Supermicro’s production and potentially incinerating its revenue streams.

To read the last 10Q where all this data was pulled from:

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001375365/b7acfa4a-553c-4eb6-ba1b-5d44ba332963.pdf

AMD: The Fire Spreads


As Supermicro struggles to contain its fires, the fire has now reached AMD, one of its primary suppliers and a cornerstone of the AI chip market. On November 18, 2024, AMD’s Chief Accounting Officer resigned (effective immediately), a move eerily timed with EY’s departure from Supermicro. When the same auditor that flagged governance failures at Super Micro also oversees AMD financials, as they get ready for their 10k filing next month.

The $SMCI board has been blitzkrieged with the "everything is awesome" hype all year. Some readers may be interested in another view, an indication that perhaps the $SMCI hype may be flawed. If one is so confident in their "everything is awesome" analysis, then let it play out. Mud-slinging only shows that one has no real substance to share.

Truth of the matter, Nasdaq doesn't have to wait til next month to make a decision. The last time $SMCI was delisted only took 24 hours to make a decision.

I understand there's a gang here that bought much higher prices and are now trapped, trying to pump and dump before delisting. Looking at the $SMCI chart reveals that bulls are trapped. No, the sticky will not be taken down because some don't like it. Any "unbiased" reader that reviews the stickied material understands how this will likely end. Those that don't have any substance to offer resort to attacking posts that do have substance. They lack confidence in their positions. There's an ignore feature available to all😎

The links below, also included in the stickied post are most revealing...

https://justdario.com/2024/11/smci-the-nuclear-nothing-burger-that-can-expose-nvidia-shenanigans-part-2/

https://justdario.com/2024/09/smci-the-nuclear-nothing-burger-that-can-expose-nvidia-shenanigans/

https://justdario.com/2024/08/hyperscalers-or-hypercheaters-adding-hindenburg-piece-to-the-big-ponzi-puzzle-we-have-been-putting-together-till-now-while-waiting-for-nvidia-earnings/

Supermicro will run on the hips of NV*DA.

Now that is good DD, well worth reading and considering, for a trader, for me it is mid term hold and I am waiting this one out. But sincerely thank you for a great synopsis with the technicals. One thing I am hoping for Nasdaq extension before Christmas, so that tax loss selling doesn't come into play, so people can actually hold. The stock is currently in limbo without the extension, it will get a push after that, then we wait the reports, then hopefully DOJ will dismiss the fraud accusations, but we also have to be mindful of other catalyst, such as, major contracts that company can fulfill.

SMCI needs to hold above around $25 or

the daily low on Wednesday for the

Thursday low if buyers can hold it...

To have a chance of moving above

$30 per share next week...

Plenty of shorts out there that haven't

bothered to cover yet...

Because they know that retail gets discouraged

if the price doesn't hold support after

a regular pull back from heavy trading...

Price persistence makes shorts cover

more than a big rally and a flop...

Now it is orderly if next step up starts

slowly from the back test...

so we watch...LJ

https://www.nasdaq.com/articles/super-micro-submits-plan-stay-listed-stock-attractive-now

Hands down, without hesitation once Nasdaq issues extension and DOJ finds no fraud on the management part, this will fly. But yet we will read AI is done for good. AI is here to stay, it will be a way of life and that is a fact.

https://fintel.io/so/us/smci

No, wrong, get your facts straight, furthermore, where is the proof on accounting fraud? Show me proof.

The shorters and media actually know what that form is , and its not what they portrayed it as. Its simply just a notice stating that at this time they have not recieved an extension.

This is already known information, yes theyve submitted a compliance report, no they havent granted the extension YET! And that is why they have issued that notice, also notice it is backdated to the 14th of November, that is because at that time there was no compliance plan yet, however now that theyve recieved it a follow up notice will come once they have decided wether or not to accept the request for extension. We should hear back from them within 4 weeks of the compliance plan being recieved.

At this stage we HAVE NOT been delisted contrary to some dodgy journos taking advantage of the little knowledge that retail posess to portray it as though the compliance plan was rejected, if that was the case we would ALREADY be delisted, instead at the moment the compliance plan is being reviewed

Baby puts and baby bears on IHUB make me chuckle, every time this moves 20-30% up North and gives back 3-8%, the baby bears start distorting the narrative with high fives, thinking IHUB makes this move, they have no clue what is about to hit them. Just give it 3-4 weeks, these prices will definitely not last. SMCI will run on the hips of NV*DA. Shock n awe coming after extension is granted and audit is done.

Hire new auditor
Avoid delisting

$NVDA beat earnings
Jensen mention importance of SMCI
Blackwell demand high
Jensen mention Blackwell needing SMCI liquid cooling tech

Next Nasdaq extension a lot of fears will be subsided

Then next BDO audit and if books weren't cooked. This stock will run so fast, it will make your head spin.

I can wait this out, unlike you with your measly weekly puts for ends meet, who thinks no one should touch this. So we watch and see by Christmas how things unfold here.

NVDA CC at 46 minutes where Jensen mentioned

a long list of key partners...



Not to sound degrading, but it seems like

Jenson could sell ice water to an Eskimo...

puts did well on Wednesday which keeps

the buyers for those sellers coming back...


so we watch...LJ

Of course he lies through his teeth and to claim to me other day he was not shorting this. Even his sticky is short and distort, Ernest and Young never claimed that they were cooking books.

Expecting Nasdaq extension in December right before Christmas and major Santa Rally on the way.

That is not DD, that is an opinion.

NVIDIA said Supermicro is a "Key Partner". I guess you wouldn't understand what that means, since it doesn't help your measly weekly puts.

That XAI, Colossus, delivery had to be what

killed gross profit in 2nd quarter by

being billed too low for costs...

Hadn't thought about it the way you

mentioned for the next XAi facility

to be built in 2025...

so we watch...LJ

NVDA CEO mentioned SMCI on its earnings call tonight.

Did NVDA say anything that helps SMCI?...

8-k after hours got a short extension on

a revolver account...Can SMCI get a 10K

filing done by 12/31/2024?...

I have no idea what the pr after hours

says or means...

SMCI seeing a pull back on some quick,

big profit taking wasn't a surprise...

Are traders coming back for more?...

so we watch...LJ

At first, you stated that the information was coming from PRs. When you were asked to back up that statement, you changed your story and are now saying that the info is from news releases.

Second, that is old news. As stated multiple times, Elon Musk stated many months ago that the plan was to split the server order between Super Micro and Dell. Super Micro delivered lots of servers with over 100,000 GPUs. Dell hasn't delivered anything yet.

Anyone can see the result of the Super Micro delivery here:

Typo that was clarified right here. With links to multiple news releases. All dated this week. According to what was reported in the attached links, yes it has changed from those outdated tweets you have:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175416990

The "delisting" issue trumps all other matters right now. A public announcement may catch some off-guard. No one knows when that may be.

GLTY

After hours, the NVDA CEO stated that "the age of AI is in full steam, propelling a global shift to Nvidia computing".

That should bode very well for SMCI.

OK, I get it now, you are a shorter & distorter.

First, you lied. At first, you stated that the information was coming from PRs. When you were asked to back up that statement, you have now changed your story and are saying that the info is from news releases.

Second, that is old news. As stated multiple times, Elon Musk stated many months ago that the plan was to split the server order between Super Micro and Dell. Super Micro delivered lots of servers with over 100,000 GPUs. Dell hasn't delivered anything yet.

Anyone can see the result of the Super Micro delivery here:

https://ih.advfn.com/stock-market/NASDAQ/super-micro-computer-SMCI/stock-news/94957869/form-8-k-current-report

FinancialJuice@financialjuice
SUPER MICRO COMPUTER GETS NASDAQ NON-COMPLIANCE NOTIFICATION WITH NO IMMEDIATE EFFECT ON LISTING OR TRADING.

Seems Nasdaq can't afford delisting SMCI even if its accounting is clear fraud. guess it can't pop the AI bubble for now

News releases, not from Supermicro. But here's some. They look legitimate:

https://evrimagaci.org/tpg/elon-musks-xai-moves-major-server-order-to-dell-63446

https://www.networkworld.com/article/3608660/musks-xai-shifts-ai-server-business-from-struggling-supermicro-to-dell.html

https://www.msn.com/en-gb/money/other/elon-musk-s-xai-reportedly-shifts-6-billion-ai-server-order-from-troubled-supermicro-to-its-rivals/ar-AA1ujJ2K

https://www.tomshardware.com/tech-industry/artificial-intelligence/elon-musks-xai-reportedly-shifts-usd6-billion-ai-server-order-from-troubled-supermicro-to-its-rivals

>

What PRs????

Please post links....

If this continues to rise with this pace, we might be green today!

Reversal time.

Apparently, that just changed ...as indicated in the multiple PRs

<< xAI, Elon Musk's AI startup, has shifted all AI server orders from troubled Supermicro to Dell, reports UDN.com. >>

I believe that is fake news.

Elon stated many months ago (back in June 2024), that he was going to split the order between Super Micro and Dell.

https://x.com/StockMKTNewz/status/1803429419765141633

https://x.com/elonmusk/status/1803429159005241780

It's worth it to take a position here.

Yes, that is what they do, I am going to watch and listen to NV*DA call today after market, if they say during conference call that they are shifting away from SMCI, then that will be the kiss of death. Never said it will be smooth ride, I said if they overcome all the speed bumps, Nasdaq extension, and BDO confirms that the books haven't been cooked, then yes you will that 200 dollars in 6-9 months. I never fret about 6-8% drop in one day, I will let it play out, the market believes that Trump economy is going to kill this irrational exuberance, but that is the thing, SMCI is already a beaten down, how much further dow n will it go, all depends on SMCI management.

all eyes on that other stock, good news from them will push this and rest of sector up. if not then get ready for another dip.

xAI, Elon Musk's AI startup, has shifted all AI server orders from troubled Supermicro to Dell, reports UDN.com.

https://www.msn.com/en-gb/money/other/elon-musk-s-xai-reportedly-shifts-6-billion-ai-server-order-from-troubled-supermicro-to-its-rivals/ar-AA1ujJ2K

https://money.udn.com/money/story/5612/8366479?from=edn_maintab_index

https://www.google.com/search?q=xai+shifts+orders+to+dell&rlz=1C1RXMK_enUS1056US1056&oq=xai+shifts+orders+to+dell&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIGCAEQRRhB0gEJMTMyNjJqMGo0qAIAsAIB&sourceid=chrome&ie=UTF-8

What I learned about cornered rats from G. Gordon Liddy…they attack and go for the throat. I don’t think this will be a smooth ride to $200 if what you say is true about the short numbers. Maybe $50 will be easy enough. We’ll see.

SUPER MICRO’S SECOND CHANCE OR NASDAQ’S NEXT SCANDAL?

https://justdario.com/2024/11/super-micros-second-chance-or-nasdaqs-next-scandal/

Thanks, made a nice profit and got out. Just watching to see what NVDA does and then trade accordingly. I believe we're in Irrational Exuberance big time but that doesn't mean they will end that anytime soon. Too many have been expecting a pull back but the amount of NVDA bulls also feels way too many so we will see how this week plays out.

All barring on what NVD*A will say during earnings call tomorrow after hours.

NVDA sells their own liquid cooled servers...

are you sure about that price?...

No insiders have spent any of their own

money to buy shares in filings that were

either for Directors fees or insider bonuses...


so we watch...LJ