According to a Digitimes article posted Monday, Nvidia (NASDAQ:NVDA) East it is said that he carried orders originally placed with Super Micro Computer (NASDAQ:SMCI) to other suppliers to minimize disruptions in the AI server supply chain. This change is intended to stabilize Nvidia’s business in light of Super Micro’s financial reporting difficulties, whose failure to submit its financial statements by November 20 could result in delisting.
After resignations of auditors and questions about its financial transparency, Super Micro has come under scrutiny. After Hindenburg Research published a brief analysis last week questioning the company’s accounting policies, the AI server provider experienced its largest weekly inventory loss on record, at more than 45%. Super Micro then postponed its annual 10-K filing, saying it expects little change in its fiscal 2024 numbers.
Despite Super Micro’s ongoing financial woes, Nvidia is attempting to maintain a consistent supply chain for the AI server market by redirecting orders to other suppliers. In early trading Monday, Nvidia shares rose 1.69%; However, Super Micro’s shares have remained erratic in light of recent events.
This article first appeared on GuruFocus.