Shares of Super Micro Computer Inc. (NASDAQ: SMCI) are under pressure this week after a Fortune report revealed the company’s general counsel launched an internal audit investigation into accounting practices during its rapid AI-fueled rise.
SMCI had been a retail favourite and a top-performing AI infrastructure stock, surging on NVIDIA tailwinds and hyperscaler demand. But now, short-seller concerns and internal legal reviews are rattling investor confidence.
On April 1, Fortune reported that Supermicro’s legal head initiated a probe after discovering unusual entries in the company’s books—an issue reportedly flagged before the stock’s parabolic climb earlier this year. The news has raised fresh questions about whether AI exuberance masked deeper structural issues.
SMCI’s fundamentals remain tied to AI server demand—but when a company’s own legal team opens an audit inquiry, the narrative shifts. Investor focus is no longer just about earnings and orders—it’s now about governance, transparency, and the integrity of past profits.
Until the audit concludes and market confidence returns, SMCI stock remains vulnerable to deeper correction—even in a bullish AI market.
This post was last modified on Apr 02, 2025, 10:21 BST 10:21