$Super Micro Computer (SMCI.US)$ Recently, due to the resignation of auditors and financial crisis, the stock price has plummeted, with rumors in the market that it may be delisted soon, causing concerns from various parties. As a solid partner of Nvidia, Super Micro Computer's fate undoubtedly attracts great attention from industry insiders.

However, according to revelations, $NVIDIA (NVDA.US)$ It seems that a decision has been made to remove the risks related to Super Micro Computer, redistributing the orders originally assigned to Super Micro Computer to other suppliers in order to contain potential disruptions.

According to reports, Super Micro Computer's competitors, Gigabyte, ASRock, and others have unexpectedly received inquiries from bulk customers and have successively raised their fourth-quarter and full-year revenue and shipment volumes. Supply chain sources indicate that Gigabyte and ASRock have already signed contracts with major customers like CoreWeave.

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.

Supply chain chaos

At the end of August, the well-known short-selling institution CoreWeave released a short report on Super Micro Computer, causing concerns about the company's financial statements. A day later, Super Micro stated that it would delay the submission of the annual 10-K report but insisted that there would be no significant changes in the 2024 fiscal year.

However, last week, Super Micro Computer's auditing firm, Ernst & Young, announced its resignation and will no longer be responsible for Super Micro Computer's financial reports, citing the unreliability of the company's financial statements. According to regulations, if Super Micro Computer fails to submit its financial report by November 20th, it may face severe penalties such as delisting.

Last week, Super Micro Computer also saw a significant drop in its stock price, with a decline of over 45%. If the leaked Nvidia order transfer is true, it will undoubtedly worsen the dilemma for Super Micro Computer.

Previously, Super Micro Computer has invited Nvidia CEO Huang Renxun to participate in its COMPUTEX conference activities for two consecutive years, and the two companies have a close relationship. Nvidia's endorsement has also helped Super Micro Computer's performance and stock price surge over the past year and a half, making it one of the core stocks in the investment market's AI concept.

However, times have changed, and Super Micro has now become the biggest 'landmine' in the semiconductor industry. This mine has already affected affiliated companies Lite-On, Great Power, and Kinwong.

Lite-On produces products such as GeForce graphics cards and Nvidia RTX graphics cards. Great Power and Kinwong are mainly engaged in cloud server chassis and power supplies. The leaders of these two companies are brothers related to Super Micro Computer's chairman, Liang Jianhao. Great Power and Kinwong acquired Lite-On in April this year, including it in Super Micro Computer's territory.

Currently, the industry has not been able to determine to what extent the impact of the Super Micro Computer incident will spread, but almost everyone has started to watch cautiously, attempting to control this risk.

Editor/Rocky