Super Micro Computer's 10-for-1 Stock Split Takes Effect Amid Controversy
The tech company's stock split aims to attract more investors, but allegations and a DOJ probe have impacted its share price.
- Super Micro Computer's (NASDAQ: SMCI) 10-for-1 stock split is effective today, with shares to trade at the new price tomorrow.
- The stock split is intended to make Supermicro shares more accessible to a broader range of investors.
- Recent allegations by Hindenburg Research of accounting malpractice and a possible DOJ probe have led to a 30% drop in Supermicro's stock since late August.
- Despite these challenges, Supermicro remains a key player in the AI-driven data center market, with strong demand for its customized server solutions.
- Investors are advised to weigh the increased risks from ongoing investigations against the potential long-term growth prospects of the company.