Super Micro Computer stock plunges on report of DOJ probe

Published On Sep 26, 2024, 2:55 PM

Super Micro Computer's stock dropped sharply, falling 15% following a report that the U.S. Department of Justice (DOJ) is investigating the company for potential accounting violations. This scrutiny comes after a report from Hindenburg Research flagged significant accounting issues and undisclosed related party transactions. Despite the drop, the company has seen substantial growth in its stock over the past year and remains a significant supplier of AI server technology, particularly to Meta. However, analysts have expressed caution, with some downgrading the stock outlook due to the ongoing investigation and missed earnings expectations.