NVIDIA Could Miss Guidance if Super Micro Computer Faces Funding Issues
Super Micro Computer's financial troubles could impact NVIDIA's guidance, according to Mizuho analysts.
NVIDIA Could Miss Guidance if Super Micro Computer Faces Funding Issues
Super Micro Computer (SMCI), a major supplier of servers and AI racks, is facing serious financial and legal challenges. Mizuho analysts now suggest that these troubles could impact NVIDIA, as SMCI is a significant customer. SMCI is dealing with allegations of financial misconduct, a DOJ investigation, auditor resignations, and a potential delisting from Nasdaq. Mizuho argues that SMCI's negative working capital model, requiring external funding to purchase GPUs for large NVIDIA systems, puts the company at risk of a funding deficit. "My view is any customer that does not want the risk of missing a deadline or financial target due to issues related to SMCI is going to move their AI server business to another supplier, like DELL." - Mizuho Analyst SMCI's Growing Challenges SMCI's problems began with allegations from Hindenburg Research, including claims of channel stuffing, partial shipments, rehiring executives involved in past accounting violations, and questionabl…
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