Super Micro Computer Inc (NASDAQ:SMCI) shares are trading higher Tuesday, bouncing back after falling nearly 50% last week after the firm’s independent auditor raised governance and transparency concerns.

Super Micro Computer (SMCI) will report quarterly earnings on Tuesday after market close, following a series of recent challenges. Most recently, the AI hardware company’s auditor, Ernst & Young, resigned over disagreements about Super Micro’s governance practices and board independence.

If you’re just looking at raw percentage gains since the AI mania began, Super Micro Computer (NASDAQ:SMCI) would probably qualify for the top spot of which stock popped the most–before it crashed. This stock has been riddled with a boatload of problems and is down 77% from its March peak–39% in the past month alone.

Super Micro Computer (NASDAQ:SMCI) is expected to report its first quarter business update for the fiscal year 2025 on November 5, Tuesday, as the company faces uphill battles, the latest being the unexpected resignation of its auditing firm.

Investors in server maker Super Micro continue to flee after news this week that Ernst & Young has resigned as its auditor.

Super Micro says its special committee has so far found that its audit committee “acted independently and that there is no evidence of fraud or misconduct on the part of management” or the board.

But in some cases, they draw attention to problems that other investors overlooked In late August, Hindenburg Research released a scathing report saying that Super Micro Computer engaged in accounting manipulation,

On Tuesday, Super Micro said its independent “Special Committee” formed by the board of directors and led by independent counsel found “no evidence of fraud or misconduct on

Super Micro Computer (SMCI) shares plunged in extended trading Tuesday after the server maker said it "remains unable at this time to predict" when it will file its delayed annual report for 2024, exacerbating delisting worries.