Nvidia moves Super Micro orders to other suppliers to maintain supply chain stability – report

Nvidia (NASDAQ:NVDA) is rerouting orders previously placed with Super Micro Computer (NASDAQ:SMCI) to other suppliers, to contain the disruption within the AI server industry, Digitimes reported.

The move comes on the heels of ongoing financial reporting challenges being faced by Super Micro. Reportedly, if the company does not submit its financial statements by Nov. 20, it risks another delisting, after having being delisted in 2018 for non-compliance in financial filing, the report added.

Nvidia has stepped in to manage the impact of Super Micro’s challenges on the larger industry, aiming to stabilize the supply chain. The U.S. chip giant is redirecting Super Micro’s client orders to other providers to limit the disruption within the AI server market, the report noted.

Shares of the Super Micro slumped over 45% last week, marking its worst week on record, after the auditor for the AI server maker resigned. Concerns about the company’s financial statements came up in late August after Hindenburg Research issued a short report on the company. A day later, Super Micro then said it was delaying its annual 10-K filing. The company later noted that it does not expect any material changes to fiscal 2024.

Last week, Super Micro announced an amendment to its loan agreement with Cathay Bank which, among other things, extends the date by which the company is required to deliver its annual results.

Super Micro’s client orders have been moved to other companies, with Gigabyte and ASRock seeing an increase in new orders and customer inquiries. Supply chain sources suggest that Gigabyte and ASRock have gained from Super Micro’s rerouted orders, securing contracts with major clients like CoreWeave, the report added.

Taiwan-based Gigabyte has raised its fourth-quarter and annual server revenue forecasts. The company is also speeding up its deployment of liquid cooling technology to match Nvidia’s rapid growth, the report noted.

Meanwhile, ASRock, which is also based in Taiwan, has gained redirected orders from Super Micro’s small and mid-sized clients, setting a record for third-quarter revenue. The fourth quarter is anticipated to peak, with annual revenue and profit guidance revised upward, according to the report.

With Nvidia’s H200 shipments starting in the fourth quarter, ASRock has joined the supply list for GB200 in the second half of 2025. The company also intends to unveil liquid cooling products, supporting profit growth forcast for 2025, the report noted.

However, Super Micro’s woes has potentially sent shockwaves through its supply chain, affecting vital partners such as Leadtek, backed by Ablecom Technology and Compuware Technology. This reliance on Supermicro has raised concerns over Leadtek’s AI market share and performance, as per the report.

Ablecom and Compuware, whose chairmen are siblings of Super Micro’s chairman, have close relations with the company. Their investment in Leadtek was reportedly steered by Leadtek’s Nvidia Quadro distribution rights in China and its local network. The potential impact of this investment on Leadtek is not clear, the report added.

Orient Semiconductor Electronics, which provides packaging and testing services to Super Micro, also faces potential disruptions impacting its operations, the report stated.

Thermal management solutions supplier Auras Technology and electronic parts provider Argosy Research have also been caught in the storm. Both companies have seen reduced orders, which could affect their standing in the AI sector, the report noted.

These companies, which are part of Super Micro’s supply chain, are cautiously managing the situation amid shifting client demands and revenue concerns, the report added.