Did Super Micro Computer's Troubles Just Deepen?
Earlier this year, Super Micro Computer (NASDAQ: SMCI) reigned with Nvidia as the market's best-performing stocks. Supermicro advanced 188% in the first half, while Nvidia climbed 149%.
Why did this 30-year-old company suddenly jump into the limelight? The equipment maker, providing elements like servers for artificial intelligence (AI) data centers, saw its earnings soar amid the AI boom.
But this growth story dimmed in recent times as troubles for the company started piling up, and all of this has led to a more than 60% drop in the stock since late August. A short report alleged problems at Supermicro, a newspaper article spoke of a possible Justice Department investigation, and just recently, Supermicro auditor Ernst & Young resigned from the job.
Source Fool.com
