US EditionSuper Micro Shares Plunge as US Charges Co-Founder, 2 ...
Super Micro shares plunged more than 25% due to charges of Nvidia chip smuggling to China, while Dell Technologies gained 4.5% as a likely market beneficiary, analysts said.
- On Friday, federal prosecutors in the SDNY charged SMCI's co‑founder, a manager, and a contractor, causing shares to fall over 25%, their worst one-day drop since 2024.
- After management turnover and an accounting debacle less than two years ago, the smuggling case involves a member of Super Micro Computer's board of directors, expanding scrutiny on the firm.
- Rival stocks rallied, with Dell Technologies drawing buying interest Friday as analysts called the setback a potential "biggest windfall yet" and brokers noted likely market‑share shifts.
- Wedbush's Matt Bryson said Dell is the most likely to scoop up business, while design manufacturers such as Pegatron and other equipment makers including Cisco and Hewlett Packard Enterprise could also benefit.
- Nvidia shares retreated about 1% as the market reassessed chip exposure, with Jefferies and Mizuho noting Dell's ties to Nvidia could give it an edge.
19 Articles
19 Articles
Several people, including one of Supermicro's co-founders, were arrested as part of a system aimed at illegally re-exporting high-performance computer servers to China.A case that comes in the context of a debate on the relaxation of the restrictions on the export of semiconductorsOne of the leading American manufacturers of servers dedicated to artificial intelligence is in turmoil after a ruling by the US justice system released on Thursday.
Super Micro shares plunge as US charges co-founder, two more for smuggling AI chips to China
Super Micro shares sank 33% on Friday after US prosecutors charged three people linked with the company, including its co-founder, with helping smuggle billions of dollars worth of AI technology to China.
Chinese companies could not buy AI chips from Nvidia - that is why some of them were smuggled by detours. In such an action, hair dryers and drapes were also used.
Chinese companies were unable to buy AI chips from Nvidia, which is why some of them were smuggled by detours.This was also the case with hair dryers and drapes.In one day, shares of the computer manufacturer Supermicro lost more than a quarter of their value - previously, US investigators had accused several employees of smuggling AI chip systems from Nvidia to China. According to the allegations, Supermicro's servers were initially delivered t…
The Nasdaq Sinks As Super Micro AI Chip Smuggling to China Takes Center Stage
Quick Read Super Micro Computer (SMCI) shares plummeted 28.37% after federal prosecutors charged co-founder Yih-Shyan Liaw with conspiring to smuggle $2.5B in Nvidia AI servers to China, while Nvidia (NVDA) dropped 1.66% due to direct business exposure as Super Micro accounts for 9% of its revenue, and AMD (AMD) fell 2.32% reflecting broader AI semiconductor sector anxiety. Federal export control violations involving Super Micro’s co-founder h…
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