Nvidia Shares Slip as Super Micro's Stock Declines Amid Auditor Resignation, Market Pressures
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Nvidia (NVDA, Financials) shares dropped 4% by midday Thursday as shares of partner Super Micro Computer (SMCI, Financials) tumbled 14%, erasing Super Micro's year-to-date gains amid challenges in the artificial intelligence market and recent auditor changes.
Starting the year at $28.43 and rising to $118.81 in March, Super Micro's shares dropped to $27.43 at lunchtime, a marked turn from past performance.
A number of events in the later half of 2024, including the departure of Ernst & Young LLP as its auditor, arriving only weeks before Super Micro's planned filings with NASDAQ and the Securities and Exchange Commission, have driven Super Micro's decline. Super Micro has also been under fire regarding the longevity of its direct liquid cooling systems, which was brought up during its most recent earnings call; CEO Charles Liang did not answer directly.
As Super Micro continues working with Nvidia to create AI infrastructure, including generative artificial intelligence SuperClusters and the Omniverse, the departure of its auditor and filing delays have added doubt about its financial situation. Though Nvidia's share price has dropped, the business has mostly been unaffected by Super Micro's current problems.
Investors remain wary as Super Micro prepares for its third-quarter results announcement, given increased market volatility and possible changes to its financial disclosures, which might affect future performance expectations.
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This article first appeared on GuruFocus.