$SUPER MICRO COMPUTER INC(SMCI)$ saw its stock plunge 15% on Thursday after reports emerged of a Department of Justice (DOJ) investigation into potential accounting violations.
The Wall Street Journal cited sources indicating the probe follows a report from Hindenburg Research, which highlighted "glaring accounting red flags" and undisclosed related party transactions. Despite the decline, SMCI shares are still up 57% from last year, reflecting strong demand for its AI server equipment amid a booming tech industry.
The stock hit highs above $1,200 in mid-March but has faced challenges, including a missed earnings report in August and a delayed 10-K filing. CEO Charles Liang assured customers that production capabilities remain unaffected, despite the ongoing issues.
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