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Super Micro Computer (SMCI) is in an unenviable position right now: its fundamental business metrics continue to improve at an astounding scale but the ensuing euphoria is heavily tempered by the company's ongoing delays in filing the requisite annual report for FY 2024. As speculation mounts in the wake of a high-profile short research report, the stock has remained largely flat since the 28th of August, when the filing delay was first announced.
Super Micro Computer (SMCI) Has Delivered "Over 2,000 Liquid Cooled Racks Delivered Since June 2024"
Perhaps in a bid to reset the narrative, Super Micro Computer has now announced "a complete liquid cooling solution that includes powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers and end to end management software." According to the company, this integrated offering reduces energy and 0-day hardware acquisition costs.
In what constitutes a critically important announcement, the company noted in its press release:
"Supermicro recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built, as well as other CSPs."
For the benefit of those who might not be aware, a single AI GPU rack can generate around 100kW of heat, which necessitates integrated cooling solutions. Incidentally, these cooling solutions can also allow for a more dense deployment of GPUs within a given data center space.
SMCI Has Yet To File Its 2024 Annual Report
Back in August, Hindenburg Research had leveled hard-hitting allegations against Super Micro Computer, asserting among other things that the company engages in distribution channel stuffing by pushing products to distributors based on artificially inflated demand forecasts, undertakes partial shipments to meet specific sales targets and inflate its total shipment count, re-hired top executives responsible for "widespread accounting violations" that had resulted in a $17.5 million settlement with the SEC, and paid nearly a billion dollars over the past three years to non-arm's-length suppliers such as Ablecom and Compuware.
Bear in mind that Super Micro Computer's fiscal year ended on the 30th of June, 2024, and, as such, it was required to file an annual report by the 30th of August. But, in the aftermath of Hindenburg's hard-hitting report, the firm delayed this requisite filing to undertake a comprehensive internal review.
The company now faces the specter of a probable fine by the SEC for continuing to delay the filing of its annual report. What's more, Super Micro Computer was recently informed by the Nasdaq Exchange that it was "not in compliance" with the exchange's listing rules due to its failure to file the report in a timely manner.
Do note that Super Micro Computer has continued to assert throughout the past few weeks that it does not expect its ongoing internal review to result in "any material changes" in its fourth quarter or fiscal year 2024 financial results.
Super Micro Computer is NVIDIA's third-largest customer. What's more, SMCI's biggest client is NVIDIA, and its second-biggest client is an entity that is backed by NVIDIA.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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