Super Micro Computer Inc. (NASDAQ:SMCI) is gearing up for its first-quarter earnings report Tuesday after the market close. Expectations are set for 75 cents in earnings per share (EPS) and revenue of $6.45 billion, according to Benzinga Pro data.

Super Micro's financial credibility, following significant governance issues, concerns investors.

Here's what to watch as the company tries to stabilize in the wake of these challenges.

SMCI Under Pressure

SMCI stock has taken a beating over the past year, with shares down 3.05% year-over-year and 8.83% year-to-date.

The recent departure of Ernst & Young as its auditor over transparency and governance concerns hit shares even harder. While management has set up a special committee to address the issues, SMCI now faces a Nov. 20 deadline to regain Nasdaq compliance or risk delisting.

Read Also: Super Micro Analyst Suspends Rating Over Governance, Accounting Issues

The pressure is on for Super Micro to convince investors that it's addressing these issues head-on.

A Bearish Setup Ahead Of Q1 Earnings

From a technical perspective, SMCI is deep in bear territory.

Chart created using Benzinga Pro

The stock currently trades at $26.34, far below its 200-day simple moving average of $71.97, and shows no signs of recovery. With a relative strength index (RSI) of 23.71, SMCI is in oversold territory, suggesting the stock could fall further unless fundamentals improve.

Meanwhile, the moving average convergence divergence (MACD) indicator sits at a negative 4.69, reinforcing the negative outlook.

Key Partnership With Nvidia At Risk

Super Micro's issues extend beyond the stock chart. Nvidia Corp (NASDAQ:NVDA) has reportedly rerouted some orders to Asia-based suppliers Gigabyte and ASRock, signaling that Super Micro Computer's internal issues are affecting business relationships.

As demand for AI infrastructure remains robust, competition is fierce, and SMCI risks missing out on critical revenue streams if it can't maintain partner confidence.

What's At Stake In This Earnings Call?

With Super Micro Computer's first quarter results around the corner, analysts are wary. Rosenblatt analyst Hans Mosesmann suspended his rating, citing a lack of financial clarity, while Wedbush's Matt Bryson slashed his price target from $62 to $32.

Tuesday's earnings report could determine whether the company can shift sentiment, but unless the company addresses transparency and governance concerns, investors may remain skeptical.

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