Super Micro Computer Shares Plummet 20% After Auditor Resignation

Shares of Super Micro Computer, Inc. (SMCI) experienced a significant decline on Wednesday, October 30, 2024, following the resignation of its auditor, Ernst & Young LLP. The stock plummeted by approximately 20% in premarket trading after the news broke.

The resignation was communicated through a letter sent by Ernst & Young LLP to the members of the audit committee of Super Micro Computer’s board of directors on October 24, 2024. This move has raised concerns among investors, leading to the sharp drop in the company’s stock price.

Super Micro Computer, a company known for its artificial intelligence server solutions, has seen its stock performance heavily impacted by this development. The auditor’s resignation comes after months of earlier concerns, which have now culminated in this significant market reaction.

The company’s filing with the SEC, Form 8-K, detailed the change in certifying accountants, highlighting the formal resignation of Ernst & Young LLP. This change is expected to have ongoing implications for the company’s financial reporting and investor confidence.