Filing delay and Hindenburg Research report cause Super Micro shares to drop 23%.

• On Wednesday, Super Micro's shares dropped 23% after the company disclosed that it would not submit its annual report for the fiscal year by the deadline.
• On Tuesday, Hindenburg Research revealed a short position in the company, claiming "new evidence of accounting irregularities."
• JP Morgan analysts believe Hindenburg's report lacks specifics regarding the company's alleged misconduct.

On Wednesday, the company's shares plummeted more than 23% after it announced it would not submit its annual report to the U.S. Securities and Exchange Commission on schedule.

"SMCI cannot submit its Annual Report on time due to excessive effort or expense, according to a statement from the company. The company needs more time to evaluate the effectiveness of its internal controls over financial reporting as of June 30, 2024, the release said."

Super Micro produces servers that businesses utilize for various applications, including AI algorithms. Notable clients of the company include Nvidia, AMD, and Intel, all major players in the AI industry.

Despite the stock's 47% increase year to date, investors were concerned on Tuesday after Hindenburg Research revealed a short position in the company. Hindenburg claimed to have found "fresh evidence of accounting manipulation" in its report, which CNBC could not independently verify. The delay in Super Micro's annual report may be linked to Hindenburg's findings, but it is unclear.

JP Morgan analysts believe that some of Hindenburg's claims are difficult to verify and that the report lacks specifics regarding alleged wrongdoings from the company.

Despite its rapid growth due to demand for its AI servers, Super Micro still needs to improve its communication with investors and establish clear governance and transparency, as analysts have pointed out.

The analysts stated in a Tuesday note that while they have reviewed the report in detail, they found only limited evidence of accounting irregularities beyond the 2020 charges from the SEC and little new information regarding the existing business ties with companies owned by the siblings of the SMCI founder.

— CNBC's Michael Bloom contributed to this report