NVIDIA moves orders away from Supermicro over dodgy financials, DOJ investigation

NVIDIA is reportedly already redirecting orders away from Super Micro Computer, (SCMI) after the company has found itself embroiled in controversy... its accounting firm resigning on the spot, and a DOJ investigation.

SCMI's biggest client is NVIDIA, and its second-biggest client is an entity backed by NVIDIA... pretty much forcing NVIDIA to start redirecting orders away from SMCI to other suppliers. In a new report from DigiTimes, we're learning that NVIDIA has started redirecting its orders placed with SCMI, to other suppliers.

SCMI is now looking at allegations of financial malfeasance, a preliminary DOJ investigation, and the sudden resignation of its accounting firm Ernst & Young which was in the process of auditing SCMI. NVIDIA shifting orders for its new B200 and GB200 AI servers away from Super Micro Computer, with Team Green being its biggest client... isn't looking good at all.

Super Micro Computer has announced 3 major changes to its existing loan agreement with Cathay Bank:

• An extension in the date by which the audited financial statements for FY 2024 have to be delivered from the 28th of October to the 31st of December, 2024.
• An extension in the date by which the income statement and the balance sheet for the quarter ending on the 30th of September have to be furnished from the 29th of November to the 31st of December, 2024.
• Super Micro Computer must now maintain a minimum unrestricted cash balance of $150 million "at all times."