The stock of Super Micro Computer (SMCI.US) has performed very poorly in recent weeks.

Intelligent Finance News APP learned that as one of the biggest beneficiaries of this year's AI boom, the stock price of this datacenter server manufacturer has plummeted by 25% since the late August delay in releasing its annual report. Previously, the short-selling institution Hindenburg Research accused the company of financial fraud.

On Friday, influenced by the overall sell-off of technology stocks, the stock price of Super Micro Computer fell nearly 6.8% again. JPMorgan analysts downgraded the company's rating from 'shareholding' to 'neutral' and almost halved the target price to $500.

Morgan Stanley analyst Samik Chatterjee and his team wrote in a report: 'As we expect future uncertainties to put short-term pressure on the stock price, we recommend that new investors take a wait-and-see approach until the company resumes compliance.'

The analyst explicitly stated that the rating downgrade was not due to a loss of confidence in the company's ability to regain compliance, nor was it based on the content of the Hindenburg report.

In addition to compliance issues, JPMorgan analysts expect Super Micro Computer to respond to ensure that customers do not transfer orders, which may involve aggressive pricing strategies, and competitors may take countermeasures.

Super Micro Computer said it needs more time to submit its annual report for the fiscal year ending June 30, and analysts at Barclays and CFRA have recently downgraded the stock rating.

In a statement released on August 28, the company stated that "management needs more time to complete the evaluation of the design and operating effectiveness of internal controls for the financial reports ending on June 30, 2024."

The day before this announcement, Hindenburg Research accused Super Micro Computer of multiple issues, including "financial fraud." The short-selling institution claims that despite Super Micro Computer reaching a $17.5 million settlement with the U.S. Securities and Exchange Commission (SEC) in August 2020, ending an investigation into "widespread accounting violations," the company's business practices have not improved and some executives who resigned during the scandal have been rehired.

Hindenburg's report stated, "Overall, we believe that Super Micro Computer is a repeat offender."

Super Micro Computer's stock price soared from below $300 in early January to nearly $1,200 in March when the company was included in the S&P 500 Index. The stock also joined the Nasdaq 100 Index in July.

On Friday, shares of Super Micro Computer fell below $400. Despite the recent sharp decline, the stock is still up about 35% this year. In addition, the company recently announced a 1-for-10 stock split to be implemented on October 1.