In the 24 hours before the countdown to Huida's earnings report, Huida edged up 1.46%. However, short-selling company Hindenburg Research stated yesterday that it was shorting Super Micro (stock code: SMCI), an important supplier of Huida. Super Micro's stock price fell as much as 8.7% in early trading yesterday.

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I still remember that on the stage of COMPUTEX at the Taipei International Computer Show in early June this year, Huang Renxun, the founder of NVIDIA, and Liang Liang, the founder of Supermicro, met the last two "Taiwanese boys" and spoke in a mixture of Mandarin, Taiwanese and English. The singing was a success, but it also left foreign media reporters confused and found that even AI was difficult to translate in real time.

Supermicro was founded by Charles Liang, who was also born in southern Taiwan and started his own business in Silicon Valley in 1993. It specializes in manufacturing servers and integrating Huida's chips, mainly for cloud services and AI Application is now one of the top three server brands in the world and has a cooperative relationship with Huida for about 20 years.

Supermicro's stock price (SMCI) has risen 112% in the past year, once breaking through $1,200. It is the "AI monster stock" sought after by the market recently.

Who is Hindenburg Research?

Hindenburg Research is a New York-based investment research firm founded in 2017 that focuses on short selling.

Hindenburg Research's operating model is to review public records and internal company documents, and conduct interviews with multiple employees, spending many months to complete the investigation report. The report is then sent to Hindenburg's limited partners, who together conduct a short sale of the target company for a profit.

Note: Short selling: Investors bet that the stock will fall, sell it by borrowing bonds, and then buy back the stocks and return them to the borrower after the stock price falls.

Hindenburg's famous deeds

Hindenburg Research founder Nathan Anderson is a forensic financial investigator known for publishing reports on alleged corporate misconduct. He worked with Harry Markopolos, who exposed the Madoff scam of the century, and successfully exposed many frauds.

To learn about the largest Ponzi scheme in history and Harry Markopolos’ important role in it, please see the Neflix documentary─Madoff: Wall Street Money-Maker

Hindenburg's first impactful report, released in September 2020, was against electric vehicle maker Nikola Corporation, which alleged that the company had lied about its technology and product performance. The SEC and the U.S. Department of Justice investigated the allegations, and Nikola founder Trevor Milton was ousted and criminally prosecuted.

Hindenburg also accused Twitter founder Jack Dorsey in March 2023 that the magic behind the payment platform Block business was not a disruptive innovation, which also attracted Ark founder Cathie Wood to complain about it and continued to increase stock prices to show support. .

(Block was short-sold by Hindenburg. The magic of Block is not innovation but fraud)

Hindenburg says it's shorting Supermicro

Short-selling firm Hindenburg Research shows that it is shorting the "AI monster stock" Super Micro (stock code: SMCI). Supermicro's stock price fell as much as 8.7% in early trading yesterday, but quickly pared the losses and closed down 2.64%.

According to Hindenburg's report, a three-month investigation that included interviews with former senior employees and industry experts, as well as a review of litigation records, international company and customs records, found that Supermicro had clear accounting red flags that it had not disclosed. Evidence of related party transactions, sanctions and export control failures and customer issues.

Tianxia Magazine quoted Bloomberg analyst Woo Jin Ho as saying:

The Hindenburg report "may open up further scrutiny of the server factory's accounting practices and customer transactions."

He also mentioned that Hindenburg is not the first agency to raise concerns, but considering that the United States is strictly examining whether AI systems flow to sanctioned companies and countries, this report will attract more attention.

Huida's financial report will be released soon

Artificial intelligence (AI) giant Huida's financial report is about to debut after the U.S. stock market closes on 8/28. The market will carefully evaluate whether the AI ​​market can bring substantial benefits to the company and related industries.

U.S. stocks rose slightly 24 hours before the countdown to Huida's earnings report, with Huida rising 1.46%. Supermicro was affected by Hindenburg's short selling, and its stock price fell 8.7% in early trading, and finally closed down 2.64%.

And Hindenburg chose to short its important supplier Supermicro at this time. Did he also want to take a gamble?

This article Countdown to Huida’s financial report, Hindenburg makes a big move to short the AI ​​demon stock Super Micro (SMCI) first appeared on Chain News ABMedia.