Hindenburg Takes Aim At AI Server Maker Super Micro With Short Position

Hindenburg Research has disclosed a short position in Super Micro Computer and alleged "accounting manipulation" at the AI server maker.

Hindenburg claimed to have found evidence of undisclosed related party transactions, failure to abide by export controls. I Photo: Solomon203 Wikimedia Commons

This is the latest move by the short seller, whose reports have shaken several high-profile companies, Reuters reported.

The report pits the short seller, which has previously clashed with billionaire investor Carl Icahn and India's Gautam Adani, against the server maker that has been one of the biggest winners of the generative artificial intelligence boom.

Shares of Super Micro were down 3.5% in morning trading. The stock has nearly doubled in 2024, after more than tripling last year.

Hindenburg claimed to have found evidence of undisclosed related party transactions, failure to abide by export controls, and other issues, citing an investigation that included interviews with former senior employees and litigation records.

"Super Micro benefited as an early mover but still faces significant accounting, governance, and compliance issues and offers an inferior product and service now being eroded by more credible competition," Hindenburg said in its report.