Is Super Micro Computer Stock a Buy? 3 Things to Watch.

With shares down by 78% from an all-time high reached in March, Super Micro Computer (NASDAQ: SMCI) might be one of the first dominoes to fall as the artificial intelligence (AI) hype cycle reaches a possible conclusion. But so far, this crash has little to do with company fundamentals and seems more related to allegedly shady accounting practices and possible wrongdoing.Let's explore three factors to watch before considering a position in this embattled tech stock.The first recent sign of trouble for Supermicro came in late August when short-seller Hindenburg Research -- which would financially benefit from a fall in the stock's price -- released a report alleging the company engaged in accounting manipulation, self-dealing, and evading sanctions related to Russia's invasion of Ukraine. Last week, some of these accusations gained strength when when Supermicro's auditor, Ernst & Young, resigned, saying, according to Supermicro that "we are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management..." Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool