🔥 AI Server Maker in the Crosshairs of Short Sellers
posted 28 Aug 2024
Hindenburg Research, an investment research firm, accused AI server producer Super Micro Computer of breaching accounting rules and other regulatory standards. Additionally, Hindenburg disclosed a short position in Super Micro.
Analyst reports, sourced from public disclosures, indicate that Super Micro has consistently violated export control laws and failed to disclose essential details about its business operations. The company has also reintroduced former executives previously involved in financial scandals and regulatory violations.
It (Super Micro) benefited as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competitionaccording to the Hindenburg report.
In 2006, the U.S. server maker admitted to illegal equipment shipments to Iran. Hindenburg Research has now uncovered evidence suggesting that the company has been funneling technology to russia through third-party countries and intermediaries and conducting business with Chinese corporations.
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