**Supermicro: $2.5B Nvidia server smuggling charges + class action/D&O/securities fraud suits; co-founder indicted, stock -33%/-65% plunge**
Key Questions
What are the main allegations against Supermicro's co-founder?
Supermicro co-founder Liaw and two others are charged with smuggling $2.5 billion worth of Nvidia AI servers to China using fake documents. The company is cooperating with authorities, while facing class action, D&O, and securities fraud suits over undisclosed risks.
How has Supermicro's stock price been affected by the scandal?
Supermicro's stock has plunged 33% over the last 30 days and 65% from its peak, trading around $21. This occurred despite positive FY26 guidance of $40 billion revenue, up 87% with a 7x P/E ratio.
What actions has Supermicro taken in response to the smuggling allegations?
Supermicro has launched an internal probe into the alleged AI chip diversion scheme. The company is cooperating with investigations amid senators' and Nvidia's probes, and Singapore enforcement is tightening regional risks.
Co-founder Liaw +2 charged $2.5B AI servers to China via fake docs; SMCI cooperating; securities suits on undisclosed risks; stock -33% 30d/-65% peak ~$21 despite FY26 $40B +87%/7x P/E. Senators/Nvidia probe; Singapore enforcement tightens regional risks.