(Reuters) – Super Micro Computer Inc (NASDAQ:SMIC) on Wednesday delayed filing its annual report and said it needed more time to evaluate the “effectiveness of internal controls” over its financial reporting, sending shares of the artificial intelligence server maker down 21%.
The move comes a day after Hindenburg Research revealed a short position in Super Micro and alleged “accounting manipulation” at the company, whose shares have nearly doubled this year on the back of the AI boom.
It was not immediately clear if there was a connection between the two. Super Micro declined to comment in its statement Wednesday when asked about Hindenburg’s allegations.
Super Micro said it did not update its results for the fiscal year and quarter ended June 30, which were announced earlier this month.
The company subsequently reported a decline in quarterly margins due to higher server production costs and competitive pricing from rivals including Dell (NYSE:).
Super Micro has become one of the biggest winners from the generative AI boom as companies bet on the technology needed to power apps like ChatGPT, helping its shares more than triple in the past year.
Hindenburg did not immediately respond to a request for comment on the delay.
The short seller on Tuesday cited evidence of undisclosed transactions with related parties, failure to comply with export controls, among other issues. Hindenburg said it conducted a three-month investigation that included interviews with former senior employees and litigation records.
The report makes Super Micro the latest target for a short seller who has been locked in a feud with billionaire investor Carl Icahn and Indian investor Gautam Adani.
In 2020, the U.S. Securities and Exchange Commission charged Super Micro with prematurely recognizing revenue and understating expenses. While the company neither admitted nor denied the SEC’s charges, it agreed to pay a $17.5 million fine.
(This story has been republished to fix a typo in paragraph 1.)