Former "AI darling" super micro computer fell more than 8% within the year. Since reaching the high point recorded in March of this year, the stock has already fallen by more than three-fourths. The company will announce quarterly performance after the market today.

Investors are beginning to suspect whether this company, embroiled in financial fraud scandals, will be delisted from Nasdaq and removed from the S&P 500 index. Last week, a document revealed that one of the Big Four accounting firms, Ernst & Young, resigned from the audit of Super Micro Computer, stating "unwilling to be associated with the financial statements of the management."

Ernst & Young expressed concerns about Super Micro Computer's internal management, independence of the board of directors, and accounting practices, which is a new major blow for Super Micro Computer. Currently, the company is also under investigation by the US Department of Justice and facing financial accusations from the well-known short-selling institution Hindenburg.

In fact, Super Micro Computer's status as a listed company began to loosen when the company postponed the submission of the 10-K form in August this year. Nasdaq's rules allow companies to submit a plan to restore compliance by mid-November, and if approved, the deadline can be extended until February 2025.

However, Ernst & Young's resignation has made this goal more challenging. Wedbush analyst Matt Bryson told the media, "I think they may ultimately be delisted for exceeding the deadline. Without auditors, how can they produce a 10-K report in just a few months?"

At the beginning of the year, driven by Wall Street's focus on artificial intelligence, Super Micro Computer was deeply integrated with Nvidia and its stock price surged, entering the S&P 500 index in March. But as the company faced a myriad of issues, Nvidia is reportedly preparing to reshuffle its orders to other suppliers.

During Ernst & Young's resignation, Super Micro Computer stated that "this matter is not expected to result in restating previously issued financial statements," and has already begun looking for another auditor. However, these statements have not convinced Wall Street analysts, who remain cautious about this.

Needham analyst wrote last week: "We now believe that once a new accounting firm is hired, the previous financial statements may need to be recompiled, which is a significant risk."

Another analysis suggests that if Super Micro Computer is delisted from Nasdaq, it may lead to its removal from the S&P 500 index - causing stocks to be forcibly sold by institutions. Data shows that about 24% of Super Micro Computer's shares are held by passive funds, while about 8% are held by funds related to the S&P 500 index.

It is worth mentioning that Super Micro Computer was previously delisted from Nasdaq in 2018 and traded over-the-counter for a period. Wedbush analyst Bryson pointed out that the last time it was delisted, the company's growth stagnated for two years.

Bryson added that customers may be frightened by financial problems, as this may imply a disruption in the company's ability to deliver products on time. It was reported that competitors of Super Micro Computer, such as Gigabyte and ASRock, unexpectedly received inquiries from bulk customers, leading to revenue and shipment volume revisions.

Gigabyte pointed out in its financial report that the company is accelerating the deployment of liquid cooling technology to match Nvidia's rapid growth. Meanwhile, ASRock Technology has been reportedly obtaining orders from Super Micro's small and medium-sized customers, setting a record for third-quarter revenue.

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