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:
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.