Tech

Super Micro shares tumble 12% after DOJ reportedly opens probe into company

Published Thu, Sep 26 202411:18 AM EDTUpdated Thu, Sep 26 20244:00 PM EDT
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Ashley Capoot@in/ashley-capoot-02496b173/

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Key Points
  • Super Micro shares tumbled after a report that the Department of Justice opened a probe into the company.
  • Super Micro makes computers that companies use as servers for websites, data storage and other applications. It’s been a major beneficiary of the AI boom.
  • The reported probe comes after Hindenburg Research disclosed a short position in the company in August, alleging “fresh evidence of accounting manipulation.”

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PARAGUAY – 2024/07/25: In this photo illustration, the Super Micro Computer, Inc. logo is displayed on a smartphone screen. (Photo Illustration by Jaque Silva/SOPA Images/LightRocket via Getty Images)
Jaque Silva | SOPA Images | Lightrocket | Getty Images

Super Micro Computer shares closed down 12% on Thursday after the Justice Department reportedly opened a probe into the company, which has been a major beneficiary of the artificial intelligence boom.

The probe is in its early days, according to a report from The Wall Street Journal, and it comes after Hindenburg Research disclosed a short position in the company in late August. Hindenburg said it identified “fresh evidence of accounting manipulation,” according to its report. CNBC could not independently verify Hindenburg’s claims. 

Super Micro makes computers that companies use as servers for websites, data storage and other applications, including AI algorithms. The company’s customers include major players in AI such as Nvidia, AMD and Intel.

A prosecutor in the U.S. attorney’s office in San Francisco has asked for information about a former employee who has previously accused Super Micro of accounting violations, according to the Journal.

Following Hindenburg’s report in August, Super Micro said it would not file its annual report for the fiscal year with the U.S. Securities and Exchange Commission on time, sending shares tumbling nearly 20%. It is not clear if the delay was related to the firm’s report.

Super Micro and the Department of Justice declined to comment. Hindenburg did not immediately respond to CNBC’s requests for comment.