Super Micro Computer's Stock Crashes 12% After US Justice Department Charges Company Officials

Company Overview

Super Micro Computer (Nasdaq: SMCI) saw its stock price plummet by 12% in the post-market trade after the US Justice Department charged three company officials with conspiring to unlawfully divert US artificial intelligence technology to China.

Key Developments

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• The US Justice Department charged three Super Micro Computer officials, including one co-founder, with illegally selling NVIDIA chips to China.
• The defendants allegedly caused the sale of $2.5 billion in Super Micro servers to a Southeast Asia company with the intention that they would be passed on to China.
• The Chinese customers received Super Micro's "flagship" products — servers incorporating NVIDIA graphics processing units or GPUs — in unmarked boxes.

Company Response

Super Micro Computer issued a statement denying any involvement in the alleged scheme, stating that the company has placed the charged officials on administrative leave and ended its relationship with the outside contractor.

NVIDIA's Response

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NVIDIA Corp. (Nasdaq: NVDA) issued a statement emphasizing the importance of strict compliance with export regulations, stating that the company continues to work closely with its customers and the government on compliance programs.

Market Impact

Super Micro Computer's stock price finished at $27.14 per share, logging a loss of around 12% from Thursday's close.