Super Micro shares plunge as US charges co-founder, 2 more for smuggling AI chips to China

Core Viewpoint - Super Micro shares experienced a significant decline of 27% following the U.S. charges against its co-founder and two others for allegedly smuggling AI technology to China, which could result in a loss of nearly $5 billion in market value if the drop persists [1][2]. Group 1: Legal Issues - U.S. prosecutors charged co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun with a scheme to smuggle at least $2.5 billion worth of U.S. AI technology to China [3][4]. - The Department of Justice reported that products valued at over half a billion dollars were sent to China between April and mid-May 2025 [4]. Group 2: Company Response - Super Micro confirmed it was not named as a defendant in the case and stated that it had cooperated with investigators [2]. - The company has placed the accused employees on leave and terminated its relationship with the contractor involved in the smuggling scheme [4]. Group 3: Market Impact - The drop in share price could erase nearly $5 billion from Super Micro's market value, which was approximately $18.49 billion prior to the news [2]. - Super Micro's valuation peaked at $67 billion in 2024 due to soaring demand for AI chips, but has since faced margin pressures and allegations from a short-seller [5].