Super Micro Computer down -32% in premarket trading

Shares of Super Micro Computer are getting hammered after their auditor Ernst & Young sent a letter of resignation and has begun process of identifying a successor.

Meanwhile SMCI does not currently expect any restatements and disagrees with EY’s decision to resign.

Yikes.

Shares are currently trading down $-16.40 or -33.27% at $32.83

Looking at chip stocks:

• Nvidia shares are also under pressure with a decline -1.52%.
• AMD announced their earnings after the close yesterday and its shares are down -8.0% in premarket trading.
• Broadcom shares are down -1.17%
• Micron shares are down -1.83%
• Qualcomm shares are down -3.37%

Meanwhile Dell shares are trading up 7.00% as it is generally thought that if SMCI is cooking the books, that it benefits Dell who builds similar computers.

This article was written by Greg Michalowski at www.forexlive.com.