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…