Financial writer discusses Super Micro Computer's drastic stock drop, accounting scandal, and limited upside potential despite overcoming challenges.

Super Micro has had a wild year, first getting caught up in the optimism about artificial intelligence before being dragged down by problems with accounting that saw its auditor resign.

Super Micro Computer (NASDAQ: SMCI) stock lost ground over the last week of trading. The company's share price closed out Friday's session down 13.3% from the previous week's close, according to data from S&P Global Market Intelligence.

Super Micro Computer shares slumped Monday morning as the stock felt the impact of a pair of headlines that came out after the bell Friday, including a potential capital raise and the stock's removal from the Nasdaq 100 Index.

Super Micro Computer shares are flat Thursday, down 13% over the past five sessions. The stock may face headwinds as the Federal Reserve on Wednesday signaled a more cautious approach to rate cuts.

Super Micro Computer (SMCI -4.64%) has been one of the hottest stocks to own during the past month. Since plummeting to $18 a month ago, the stock has rallied in a big way -- almo

Shares of Super Micro Computer Inc. SMCI rose 5.96% to $34.33 Tuesday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX rising 1.10% to 6,040.

For investors, the key question is whether management will be able to remove the doubts about the company’s finances when it does publish its earnings.