The artificial intelligence (AI) supply chain is in flux after NVIDIA Corp. began to reroute orders from AI server maker Super Micro Computer Inc., which is entangled in an accounting imbroglio.
Super Micro’s reported troubles have led to NVIDIA rerouting orders to Gigabyte and ASRock, server original design manufacturers in Asia who have secured contracts with generative AI compute supplier Coreweave, according to a report in DigiTimes Asia.
NVIDIA declined comment on the report.
NVIDIA’s change of plans are linked to last week’s decision by Ernst & Young to resign as Super Micro’s auditor, according to reports.
Super Micro said Ernst & Young — which was hired to review its finances in March — resigned because of governance, transparency and internal control concerns. EY questioned whether Super Micro maintained ethical standards, met COSO Framework principles and maintained an independent oversight body.
EY’s resignation marks the latest concern over the server maker’s accounting practices. Super Micro was already reeling from a short seller report earlier this year, delayed filing its financial statements this year, and is reportedly under federal investigation. Shares of Super Micro plunged 33% in late October on the Ernst & Young news.
The change of events not only hurts Super Micro but could benefit Dell Technologies Inc., says Mizuho desk analyst Jordan Klein.
“It may take some time, but my call is sooner than later, you start to hear from DELL mgmt. about demand and order book expansion related to SMCI overhang issues,” Klein said in a note to clients Monday.
