As disclosed in a Form 8-K, Super Micro Computer (SMCI, Financial data) terminated its loan agreements with Bank of America (BAC, Financial data) and Cathay Bank after having fully fulfilled their obligations.
When the refunds were paid on November 20, the company revoked all agreements, including all additions and modifications.
Mainly in response to accounting problems, Super Micro shares have fallen 33.5% over the past month. However, a new agreement with Nvidia (NVDA, Financial data) has sparked optimism as the company wants to take advantage of the need for artificial intelligence infrastructure. Super Micro’s liquid-cooled SuperClusters for artificial intelligence data centers have helped strengthen its position in the competitive AI hardware space.
Hindenburg Research said in August that Super Micro’s reports included errors and that public sales of its products were not disclosed. According to them, this resulted in a late annual report for the company and a notable drop in the stock price. The US Department of Justice has since opened a preliminary investigation into the companies’ financial practices.
Investors concerned about internal control and governance pushed Ernst & Young to exit Super Micro in October 2024. Despite these challenges, the company’s alliances with Nvidia and Fujitsu to develop energy-efficient generative AI systems suggest that she tries to turn again to new ideas.
This article first appeared on GuruFocus.