Nvidia said to be routing orders away from Super Micro amid accounting woes

Investing.com -- AI server maker Super Micro Computer Inc (NASDAQ:SMCI) is volatile again Monday as it continues to suffer from the news last week that its auditor is resigning.  Adding to today's volatility is an article in Asia that NVIDIA Corporation (NASDAQ:NVDA) is stepping in to restructure Super Micro orders, reshaping the AI supply chain.

After trading down over 8% early Monday, the stock was last up 4%.

According to DigiTimes Asia, supply chain sources indicate that Asia-based server ODMs Gigabyte and ASRock have gained from rerouted SMCI orders, securing contracts with major generative AI compute supplier Coreweave.

Last week, Super Micro disclosed that Ernst&Young (EY) resigned as its auditor, citing governance, transparency, and internal control concerns. EY questioned whether the company upheld ethical standards, met COSO Framework principles, and maintained an independent oversight body. In its resignation letter, EY stated it could no longer rely on management's representations or associate with the company's financial statements due to recently uncovered issues.

The stock, already on its back foot from a Hindenburg Research short report from August, plunged 47% last week after the auditor news.

NVIDIA, for its part, is not talking about Super Micro's woes.  “We’ll decline comment,” an NVIDIA spokesperson responded when reached last week by Investing.com for comment about the Super Micro situation.

Mizuho desk analyst Jordan Klein has been pounding the table on Dell Technologies Inc (NYSE:DELL) as a beneficiary to Super Micro's woes.

"It may take some time, but my call is sooner than later, you start to hear from DELL mgmt. about demand and order book expansion related to SMCI overhang issues," Klein said in a note to clients Monday about his long Dell call.