What is happening with smci?

Super Micro Computer (SMCI) is facing significant challenges that have led to a decline in its stock price. The issues surrounding SMCI can be summarized as follows:

1. **Auditor Resignation**: The company's auditor, Ernst & Young (EY), resigned due to concerns about the financial statements prepared by management. EY stated that it was "unwilling to be associated with the financial statements prepared by [Super Micro Computer’s] management" and could no longer rely on management's and the Audit Committee's representations.
2. **Ongoing DOJ Investigation**: SMCI is under investigation by the U.S. Department of Justice (DOJ) over alleged accounting irregularities. This investigation was likely prompted by an August report from activist investment short-selling firm Hindenburg Research, which alleged accounting manipulation at SMCI.
3. **Financial Uncertainty**: Rosenblatt Securities suspended its rating, price target, and estimates for SMCI stock due to financial uncertainty. The suspension was made after the resignation of EY and the ongoing DOJ investigation.

These factors combined have led to a significant drop in SMCI's stock price, with shares falling over 32% after the announcement of EY's resignation and continuing to decline amid the ongoing investigations and financial uncertainty.