Overview

• Super Micro’s annual report disclosed material weaknesses in internal control over financial reporting and cautioned that remediation may not succeed, potentially affecting the timeliness and accuracy of results.
• Shares fell roughly 3% to nearly 5% on Friday following the disclosure, putting more than $1 billion of market value at risk if the decline holds.
• The company said internal control over financial reporting was not effective as of June 30, 2025, and noted that remediation efforts are underway without assurance they will fully resolve the issues.
• The latest warning follows last year’s delayed filings and the October resignation of auditor Ernst & Young; Super Micro later appointed BDO USA and filed overdue reports in February to maintain its Nasdaq listing.
• Analyst coverage compiled by LSEG shows seven buys, nine holds and three sells with a median price target of $49, while peers such as Dell also fell on the day on concerns tied to AI server costs and competition.