Key insights

• 💥 SMCI's stock has plummeted by over 80% in 8 months and is at risk of being delisted from the NASDAQ.
• 💼 The current stock price of SMCI presents a potential investment opportunity due to its low price-to-earnings and price-to-sales ratios.
• 🏢 Super Micro is an established company founded in 1993, offering server and storage systems.
• ⚙️ Modular solutions and rapid time to market provide a competitive advantage.
• 🚫 Allegations of export control violations and improper revenue recognition by Super Micro.
• ❓ Uncertainties and lack of information pose immediate risks for SMCI stock and implications for NVIDIA.
• 🚚 Nvidia is reinforcing distribution and supply chains to maximize production and minimize delivery times.
• 👍 The speaker maintains a positive stance on Nvidia as a powerful AI company.

Q&A

• How is Nvidia positioning itself amidst these developments?

  Nvidia is reinforcing its distribution and supply chains to maximize production and minimize delivery times. Despite concerns regarding Super Micro's governance issues and potential impacts on institutional confidence, the speaker maintains a positive stance on Nvidia as a powerful AI company.

• What challenges is SMCI facing with its financial reporting and compliance?

  SMCI is facing challenges with its financial reporting and compliance with NASDAQ regulations. Despite potential stock gains, uncertainties loom around NASDAQ's acceptance of SMCI's plan and the company's ability to execute it. Lack of information and governance changes further add to the risks for SMCI stock, with implications for NVIDIA.

• What are the specific allegations against Super Micro?

  The allegations involve undisclosed related party transactions, rehiring of key executives involved in previous accounting issues, and potential violations impacting Super Micro, such as export control violations and improper revenue recognition.

• What were the significant events involving Super Micro according to the video?

  Elon Musk set up a massive AI super cluster with Nvidia GPUs in just 19 days, utilizing Super Micro's liquid cooling modules. Super Micro faced SEC charges for accounting violations but rectified the issues. However, new allegations by Hindenburg Research have surfaced, including undisclosed transactions, sanctions violations, and accounting red flags. Ernst & Young also resigned as Super Micro's financial auditors, citing significant concerns over internal controls and accounting practices.

• What are the key points about Super Micro as a company?

  Super Micro is an established company founded in 1993, offering server and storage systems. It relies on chips from companies like Nvidia, AMD, and Intel for its products. Its modular solutions and rapid time to market provide a competitive advantage, but there are potential risks associated with its partnerships, which could affect its relationship with Nvidia.

• What happened to SMCI's stock in the last 8 months?

  SMCI's stock has plummeted by over 80% in 8 months and is at risk of being delisted from the NASDAQ. This decline presents a potential investment opportunity with its low price-to-earnings and price-to-sales ratios, but investors should thoroughly investigate the reasons behind the stock's collapse before making any investment decisions.

• 00:00 The stock of SMCI, a major partner of NVIDIA, has collapsed by over 80% in 8 months, presenting a potential investment opportunity with a low price-to-earnings ratio and price-to-sales ratio. However, investors should be cautious and investigate the reasons behind the decline.
• 02:40 Super Micro, not a new company, offers server and storage systems using chips from companies like Nvidia, AMD, and Intel. Its modular solutions and rapid time to market provide advantages but also pose risks. This could impact its partnership with Nvidia.
• 05:27 Elon Musk set up a large AI super cluster with Nvidia GPUs in 19 days, utilizing super micro's liquid cooling modules. Super Micro faced SEC charges for accounting violations but rectified the issues and is now facing new allegations by Hindenburg Research.
• 08:12 Three sets of allegations involving undisclosed related party transactions, rehiring of key individuals from previous accounting issues, and potential violations impacting Super Micro.
• 11:22 Super Micro (SMCI) is facing challenges with its financial reporting and compliance with NASDAQ regulations. Despite potential stock gains, uncertainties loom around NASDAQ's acceptance of SMCI's plan and the company's ability to execute it. Lack of information and governance changes further add to the risks for SMCI stock. The situation has implications for NVIDIA.
• 14:00 Nvidia is reinforcing distribution and supply chains to maximize production and minimize delivery times. Super Micro faces governance issues and potential impacts on institutional confidence. Despite concerns, the speaker maintains a positive stance on Nvidia as a powerful AI company.