SMCI Stock: Supermicro Plunges on Justice Department Investigation Report

Super micro (SMCI) crashed on Thursday when news broke that the Justice Department was investigating the server maker for alleged accounting irregularities. SMCI stock was down well over 10% in early afternoon trading.

The U.S. Department of Justice is investigating Super Micro Computer after an activist short-selling firm published a report critical of the company, the Wall Street Journal reported, citing unnamed sources.

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Supermicro shares fell after a Hindenburg Research report in August that accused Supermicro of accounting manipulation, export control failures, customer problems and other issues.

Shares fell again after the AI ​​server maker delayed filing its annual report with the Securities and Exchange Commission.

Supermicro said it needed more time “to complete the assessment of the design and operating effectiveness of its internal controls over financial reporting” for the fiscal year ending June 30.

Supermicro shares fell 14.4% to 392.18 on Thursday, hitting an eight-month low intraday. The stock has lost more than 30% since the end of August.

Supermicro stock's Relative Strength Rating has taken a major hit. According to MarketSurge, the RS rating fell to 27 from a perfect 99 three months ago.

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