Analysts at Mizuho fear that the lack of an auditor (and possible challenges in getting a new one) could lead to a delisting from the Nasdaq exchange. This could dramatically reduce Supermicro's liquidity by forcing it to trade over the counter, a designation that could make shares harder to access, likely hurting the company's valuation.

Super Micro Computer (SMCI) shares plunged in extended trading Tuesday after the server maker said it "remains unable at this time to predict" when it will file its delayed annual report for 2024, exacerbating delisting worries.

Super Micro Computer (SMCI) will report quarterly earnings on Tuesday after market close, following a series of recent challenges. Most recently, the AI hardware company’s auditor, Ernst & Young, resigned over disagreements about Super Micro’s governance practices and board independence.

As an aside, SNAP jumped post earnings yesterday - see “ Should You Buy, Sell, Or Hold SNAP Stock At $12? In our recent analyses, we argued for a range of outcomes. On one hand, there is potential for the stock to rise over 2x to $1,

Super Micro says its special committee has so far found that its audit committee “acted independently and that there is no evidence of fraud or misconduct on the part of management” or the board.

Super Micro, the embattled server maker, reported preliminary first-quarter results on Tuesday. The company is facing several challenges related to its corporate governance. Super Micro said its board of directors found there was no evidence of fraud or misconduct from management after its auditor resigned last week.