Super Micro Computer Inc (NASDAQ:SMCI) shares are tumbling Wednesday after the company reported preliminary financial results and provided a business update. JPMorgan also downgraded the stock and slashed its price target.

Super Micro Computer (SMCI) shares plunged in extended trading Tuesday after the server maker said it "remains unable at this time to predict" when it will file its delayed annual report for 2024, exacerbating delisting worries.

Investors in server maker Super Micro continue to flee after news this week that Ernst & Young has resigned as its auditor.

Super Micro says its special committee has so far found that its audit committee “acted independently and that there is no evidence of fraud or misconduct on the part of management” or the board.

Super Micro Computer said on Tuesday it cannot predict when it would file its annual report with the U.S. Securities and Exchange Commission and that the results of a special committee probe showed there was no evidence of fraud on the part of management or the board.

On Tuesday, Super Micro said its independent “Special Committee” formed by the board of directors and led by independent counsel found “no evidence of fraud or misconduct on

Analysts are weighing the chances that Super Micro Computer could be delisted from the Nasdaq exchange over its accounting issues.