Super Micro Slides 3% Amid Reported DOJ Probe
Super Micro Computer shares fell 3% as a reported federal smuggling inquiry weighed on AI server makers for a second straight session.
Super Micro Computer (NASDAQ:SMCI) stock dropped 3% in morning trading to $26.23, extending a steep decline from November 12 and bringing its one-month loss to 32%, according to YahooStocks0. The downward pressure follows a reported Department of Justice inquiry into whether entities linked to Alice Huang were involved in efforts to smuggle Super Micro products into China.
According to Bloomberg, the U.S. Attorney’s Office in Manhattan is leading the investigation, though such inquiries can conclude without charges. In a statement reported by YahooStocks0, Super Micro said it has been responsive to inquiries and has fully cooperated with U.S. and Taiwanese officials, adding that Megaspeed is not and has never been a customer.
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Broad Tech Sector Pressure
Weakness across the technology sector compounded Super Micro's losses. The technology group fell 3% while the NASDAQ 100 dropped 2%. Market sentiment was further dampened by comments from Federal Reserve official Austan Goolsbee regarding inflation trends.
Other AI hardware makers also experienced sharp declines. Dell Technologies (NYSE:DELL) shares fell 8% to $341.26, while NVIDIA (NASDAQ:NVIDIA) stock dropped 4% to $159.49. The ongoing market reaction follows Jensen Huang's resignation as CEO of NVIDIA on November 12.
Key facts
- Super Micro Computer stock traded down 3% at $26.23 during morning trading.
- The technology sector dropped 3% and the NASDAQ 100 declined 2%.
- Dell Technologies shares fell 8% to $341.26.
- NVIDIA shares dropped 4% to $159.49.
Source: 247wallst.com
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