"Hindenburg Targets Supermicro for Short Selling Over 'Accounting Manipulation'... Stock Falls 2%"

Hindenburg Research Releases Short Selling Report
"Accounting Fraud, Related-Party Transactions, Export Control Violations"

U.S. short-selling firm Hindenburg Research has targeted AI company Super Micro Computer for short selling, causing the company's stock price to fall by about 2%.

On the 27th (local time), Hindenburg Research stated in a report, "Our investigation of Super Micro Computer revealed accounting risk signals, evidence of undisclosed related-party transactions, sanctions and export control failures, and customer issues." The firm also disclosed its short position on Super Micro Computer.

Previously, Super Micro Computer was fined by the U.S. Securities and Exchange Commission (SEC) in 2020 for violating accounting and disclosure obligations. Hindenburg Research pointed out in the report that Super Micro Computer did not improve its business practices even after paying a $17.5 million fine related to the SEC investigation at that time, and rehired senior executives who had left the company due to causing problems.

Hindenburg Research quoted a former Super Micro Computer employee saying, "All the people responsible for this misconduct were fired and almost all of them have returned." The report added, "Overall, Super Micro Computer is a habitual offender," and criticized, "Although it has enjoyed profits as a leader, it still faces issues with accounting, governance, and compliance, and offers inferior products and services that could be eroded by more trustworthy competitors."

Super Micro Computer responded by stating, "The company does not comment on rumors and speculation."

As of 1:31 PM Eastern Time, Super Micro Computer's stock price, targeted by Hindenburg Research's short selling, is trading at $551.89, down 1.89% from the previous trading day. The company's stock price surged from $290 in early January to $1,200 in March, a fourfold increase, but has since fallen to half of its March peak. However, it still remains up about 90% compared to the beginning of this year.

Meanwhile, Hindenburg Research is a prominent U.S. activist short-selling investor that shook the Indian conglomerate Adani Group last year. After Hindenburg Research released a negative report on the Adani Group last year, the group's market capitalization evaporated by more than $110 billion within two weeks.