"The trio allegedly routed $2.5 billion in U.S.-made equipment through shell companies, with at least $510 million ultimately reaching Chinese buyers in violation of export controls."
"Super Micro joined the S&P 500 in March 2024 amid its AI-server boom but has since lost approximately 80% of its value from its highs following its addition."
"The company's prior accounting scrutiny, delayed filings, and now this high-profile scandal raise red flags, making it one of the most vulnerable names on the watch list."
Super Micro Computer's shares dropped 33% following charges against co-founder Yih-Shyan Liaw and others for smuggling Nvidia AI chips to China. The scheme involved routing $2.5 billion in U.S. equipment through shell companies, violating export controls. Super Micro has not been charged and is cooperating with authorities. The company, which joined the S&P 500 in March 2024, has lost about 80% of its value since then. Governance issues and a history of accounting scrutiny make it vulnerable to removal from the index, with Marvell Technology positioned as a potential replacement.
Read at 24/7 Wall St.
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