Supermicro Stock Dives as Accounting Firm Resigns

Major US stock indexes traded in positive territory for most of the session on Wednesday before losing ground in the afternoon and closing slightly lower.

The swing trading day came midweek as the latest GDP figures showed an unexpected sequential decline in economic growth during the third quarter. Although the slowdown in the housing market dragged down the economy’s performance, one bright spot was consumer spending, which recorded its strongest growth rate since the first quarter of 2023.

The S&P 500 closed with a daily loss of 0.3%. The Dow Jones index fell by 0.2%, while weak performance in the technology sector contributed to the Nasdaq index falling by 0.6%.

Super Micro Computer (SMCI) shares fell 32.7%, shedding nearly a third of their value and suffering the largest daily decline of any S&P 500 stock. The drop came after a regulatory filing revealed that accounting giant EY had resigned from its role As a server auditor and data storage provider. Supermicro’s accounting practices have been under the microscope since short-seller Hindenburg Research published a report in August accusing the company of “rigging.” Supermicro said it disagreed with EY’s decision but stressed it would take the concerns raised by the accounting firm seriously.

Shares of Qorvo (QRVO), which produces power and radio frequency semiconductors, fell 27.3% as the company reported an unexpected loss for the fiscal second quarter of 2025. The company also warned that weakness in its business could continue for the rest of the year. fiscal year, citing an “unfavorable mix” related to customers choosing entry-level Android 5G smartphones at the expense of mid-tier models.

CDW Corp. announced (CDW), a provider of IT solutions for businesses, reported lower-than-expected third-quarter sales and profits, and its shares fell 11.3% on Wednesday. The uncertain economic environment has restricted spending, project delays, and weak demand for devices among enterprise and small business customers, impacting CDW’s performance.

Wednesday’s top performer in the S&P 500 was due to shares of wearables and GPS maker Garmin (GRMN), which rose 23.2%. The gains came after Garmin reported higher-than-expected sales and profits for the third quarter, with sales growing year-on-year across all of its business units. The company also raised its full-year sales and earnings guidance, expecting its momentum to continue into the critical holiday season.

Shares of packaging manufacturer Smurfit WestRock (SW) jumped 12.0% after the company released its first earnings report to reflect consolidated results following the merger between Smurfit Kappa and WestRock, which closed in July. Although the results were below top and final estimates, the company stressed that merger-related expenses contributed to its net loss for the quarter. Smurfit WestRock also highlighted its sales performance, driven by the addition of WestRock and solid volumes in corrugated packaging, indicating it is well positioned for additional growth.

FMC (FMC) shares rose 10.7% after the maker of pesticides and other crop protection products beat third-quarter sales and profit expectations. Despite a challenging environment in the agricultural industry, strong sales growth in North America, cost savings initiatives, and the sale of the Global Specialty Solutions (GSS) business helped support FMC’s strong performance.