Super Micro Dives As U.S. Accuses Execs Of Smuggling Nvidia Chips To China

Core Viewpoint - Super Micro Computer executives have been accused of illegally smuggling AI servers with advanced Nvidia chips into China, leading to a significant drop in Super Micro's stock price [1][2]. Group 1: Legal Allegations - The U.S. Attorney's Office for the Southern District of New York has indicted three Super Micro executives for violating the Export Control Reform Act [2]. - The accused individuals include co-founder and senior vice president Yih-Shyan "Wally" Liaw, sales manager Ruei-Tsan "Steven" Chang, and contractor Ting-Wei "Willy" Sun [2]. - Super Micro confirmed the association of these individuals with the company and stated that Liaw and Chang have been placed on administrative leave while Sun's ties have been severed [2]. Group 2: Company Response - Super Micro is fully cooperating with the government investigation and has not been named as a co-defendant in the case [3]. Group 3: Stock Market Impact - Following the news, Super Micro's stock fell by 12% in late trading, despite a previous rise of 1.45% to $30.79 during Thursday's market [4]. - The stock had reached a 52-week high of $62.36 on July 30 and a record high of $122.90 in March 2024 [4]. - Nvidia's stock experienced a slight decline of 1% to $178.56, maintaining its position above the 50-day moving average [4].