AMD CEO Liang Jianhou during the Computex conference in Taipei, Taiwan, Wednesday, June 5, 2024.
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Super Micro Shares plunged 22% on Wednesday to their lowest level since May last year after the troubled server maker issued shares. Unaudited financials disappoint It failed to provide specific plans to retain the Nasdaq listing.
The stock fell to $21.55 by early afternoon and is now down 82% from its March high. The sell-off has wiped out about $57 billion in market value.
AMD had its worst week ever for markets last week after its auditor Ernst & Young resigned, the second accounting firm to do so in two years. The company faces accusation The allegation, from an accounting irregularities activist, said the company violated export controls by shipping sensitive chips to sanctioned countries and companies.
Super Micro has not submitted audited financial data since May and risks being delisted from Nasdaq if it does not report its latest fiscal year results to the SEC by mid-November. The company said late Tuesday,Report preliminary results For the fiscal first quarter, it doesn’t know when it will file its annual financial report.
The company said on a conference call with analysts that it would not discuss any issues related to Ernst & Young’s decision to resign, nor would it discuss corporate governance issues. Chief Executive Officer Tony Leung said Super Micro is actively hiring new auditors.
Mizuho analysts suspended coverage of the stock on Wednesday “due to the lack of complete detailed financial and audited statements.” Wedbush analysts, who have a hold rating on the stock, said the report left “more questions than answers.”
“Management appears entirely focused on finding an auditor and resolving its late filing issues,” Wedbush analysts wrote. “However, we don’t know how big the obstacles are to achieving that goal.”
Liang said by phone that the company was “working urgently to update our financial reports again.”
Super Micro said its net sales were between $5.9 billion and $6 billion in the quarter ended Sept. 30. That was lower than analysts’ expectations of $6.45 billion, but still an increase of 181% year over year. The company’s business has been booming lately as it ships servers filled with NVIDIA Artificial intelligence processor.
NVIDIA founder, President and CEO Jensen Huang talks about the future of artificial intelligence and its impact on energy consumption and production at the Bipartisan Policy Center in Washington, DC on September 27, 2024.
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AMD shares soared 246% last year after rising 87% in 2023.
Liang said there has been strong demand for Nvidia’s latest GPU, called Blackwell, which has started shipping in recent weeks.
When analysts asked when Blackwell’s revenue would show up in AMD’s financial statements, Liang said “we’re asking about Nvidia every day,” adding that the two companies would continue to work closely together.
“Our production capacity is ready, but we don’t have enough new chips yet,” Liang said.
Analysts asked if the company’s plans to build Blackwell-based servers had changed, which could indicate that other server makers could get additional Nvidia GPU capacity or allocations at Super Micro’s expense.
“To clarify one of the previous comments about Nvidia, we have the deepest relationship with Nvidia,” Chief Financial Officer David Weigand said. “Right now we have multiple state-of-the-art projects in the pipeline and we’ve talked to Nvidia and they It has been confirmed that they have not made any changes to allocations. We maintain a strong relationship with them and do not expect this to change.
Super Micro’s forecast for the December quarter was also lower than expected. The company said revenue would be between $5.5 billion and $6.1 billion, below analysts’ average estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts expected earnings of 83 cents per share.
Super Micro said its board of directors has commissioned a special committee to investigate Ernst & Young’s concerns. The company said that during its three-month investigation, the committee found “no evidence of fraud or misconduct” by management.
“The committee is recommending that the company take a series of remedial actions to strengthen its internal governance and oversight functions, and the committee expects to submit a full report on its completed work this week or next,” AMD said, adding that it intends to take all steps Measures to maintain its listing status on Nasdaq.
watch: AMD shares fall on gains
