we're looking at hindenburg's new Target super micro computer the supplier of server equipment that became a tech Market favorite as a key benefactor of the surge in artificial intelligence is in hindenburg's crosshairs now the company's shares fell on Tuesday after Hindenburg research said it is shot the company micro super micro stock dropped as much as 88.7% following the report from Hindenburg research however the firm's shares recovered some of those losses to end the day down 2.6% according to Hindenburg the probe into the company uncovered glaring accounting red flags evidence of undisclosed related party transactions sanctions and Export control failures and consumer issues in response a spokesperson for super micro said the company does not comment on rumors and speculations in 2020 super micro paid a fine and corrected its financial statements to end an SEC inquiry into the company's disclosures and accounting practices from 2014 to 2017 the company also promised not to repeat the mistakes Wu jinho an analyst at Bloomberg's intelligence noted that hindenburg's report could raise greater server equipment makers accounting practices and C customer transactions greater scrutiny on these in fact the analyst added that while hindenburg's concerns aren't new they might intensify the spotlight on client relationships especially given heightened use uh us scrutiny of a system sales to sanction companies and countries now the company's shares have risen in value in recent quarters due to the expansion of AI making the stock a surrogate for excitement about the emerging technology the stock price of the corporation has dropped over 50% from its March High yet it is still up over 90% for the year beginning in 2019 the stock increased by at least 30% a year reaching a peak of around 250% in 2023 the market value of the firm surpassed $32 billion as a result of that Spike the company's growth earlier this year made it the greatest single stock waiting the Russell 2000 Index has seen since the N since 1999 for latest news download the Von app And subscribe to our YouTube channel