Super Micro Computer's stock fell more than 30% after US authorities charged employees, including a co-founder, with smuggling AI chips to China. The Department of Justice findings support the company's compliance and internal controls, with no charges against Super Micro itself. The incident involved an estimated $2.5 billion in smuggled sales, about 10% of the firm's FY25 revenue.
Super Micro Computer, Inc. (SMCI) shares slumped over 30% following the announcement of charges against certain employees for smuggling AI chips to China. The charges included a co-founder, but the company was not implicated in the Department of Justice (DOJ) case, which followed an extensive investigation into the matter. DOJ findings affirmed Super Micro's compliance and internal controls, resulting in no legal action against the firm itself despite the alarming headlines generated by the employee charges. The estimated value of smuggled sales in the case was $2.5 billion, representing approximately 10% of Super Micro's FY25 revenue levels. Company guidance for FY26 remains at $40 billion, indicating no expected impact from the incident. The article on Seeking Alpha notes that the stock was trading at a relatively low valuation prior to the selloff, amid the company's ongoing growth and development of new products. This development occurred as reported on March 22, 2026.