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Editor’s Note: The headline has been updated to reflect the article’s content more accurately.
Super Micro Computer Inc (NASDAQ:SMCI) is teetering on the edge of a dramatic pivot. Once a darling of Nvidia Corp‘s (NASDAQ:NVDA) AI-driven success, the server manufacturer now finds itself grappling with a slew of issues that could determine its survival.
As Super Micro hurtles toward a Nasdaq delisting deadline, all eyes are on Nvidia’s earnings next week to gauge whether Super Micro can steady its ship—or sink further into the abyss.
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Supermicro’s close ties with Nvidia have been both a blessing and a curse.
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Nvidia’s dominance in AI chip innovation fueled a meteoric rise for SMCI stock, especially during the first quarter, but that relationship is now under scrutiny.
Recent whispers suggest Nvidia is diversifying its partnerships, reportedly redirecting orders from Super Micro to other server vendors. While Nvidia hasn’t officially confirmed these moves, the implications are clear: reputational and operational risks tied to Super Micro’s ongoing crises might be too hot for Nvidia to handle.
Nvidia’s earnings call on Nov. 20 could be the turning point for SMCI stock investors. If Nvidia acknowledges its cooling stance toward Super Micro, the already battered stock might face another wave of sell-offs.
On the flip side, silence on the matter could offer Super Micro a temporary reprieve.
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Super Micro’s troubles don’t end with Nvidia. The company is racing against a Nov. 16 Nasdaq deadline to resolve its delinquent SEC filings, a fallout from the ongoing accounting fiasco sparked by Hindenburg Research’s scathing short report.
