Super Micro Computer down -32% in premarket trading

Shares of Super Micro Computer are getting hammered after their auditor Ernst & Young sent a letter of resignation and has begun process of identifying a successor. That’s a big thing as in negative “big thing”.

Meanwhile, SMCI does not currently expect any restatements and disagrees with EY’s decision to resign.

Yikes.

On October 7 Super Micro Computer (SMCI) stock surged 15.8% to $47.74 after announcing it now ships over 100,000 GPUs per quarter, including deployments with liquid cooling for major AI factories.

The company is expected to announce earnings on November 4 (that might be delayed I think). The expectations are for $0.73 on revenues of $6.457 billion. A year ago earnings were $0.34 on $2.12 billion of sales. That is a gain YoY of 114.7% and 204% respectively.

Shares are currently trading down $-16.40 or -33.27% at $32.83

Looking at chip stocks:

• Nvidia shares are also under pressure with a decline -1.52%.
• AMD announced their earnings after the close yesterday and its shares are down -8.0% in premarket trading.
• Broadcom shares are down -1.17%
• Micron shares are down -1.83%
• Qualcomm shares are down -3.37%

Meanwhile, Dell shares are trading up 7.00% as it is generally thought that if SMCI is cooking the books, that it benefits Dell who is in the same business.

This article was written by Greg Michalowski at www.forexlive.com.