The resignation of Ernst & Young as SMCI's auditor and the DOJ investigation are significant red flags that could lead to Nasdaq delisting. These issues, along with missed 10K filing deadlines, suggest serious governance problems. Historical precedents indicate difficulty in quickly finding a new auditor, which could further delay compliance with Nasdaq requirements. Despite some positive Q1 results, the overall negative sentiment and regulatory risks are likely to pressure SMCI's stock price downward in the short term.