5 Stock Market Casualties You Can’t Ignore Today

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1. Super Micro Computer Inc. (NASDAQ:SMCI)

Super Micro plunged by 33.32 percent on Friday to close at $20.53 apiece as investors unloaded portfolios after the US charged and arrested one of its co-founders for allegedly running a scheme to route US-made servers through Taiwan to Southeast Asia.

US prosecutors indicted Yih-Shyan “Wally” Liaw for violating US export controls, particularly for sending US-assembled servers containing Nvidia Corp.’s cutting-edge chips to China and selling the hardware to an unnamed Southeast Asian company for sale to Chinese customers.

Two others—sales manager Ruei-Tsang Chan and contractor Ting-Wei Sun—were similarly charged.

Following the arrest, Super Micro Computer Inc. (NASDAQ:SMCI) announced that Liaw had already resigned from the board of directors effective immediately, but it had already lost $6 billion of its market value during the day.

“The conduct by these individuals alleged in the indictment is a contravention of the Company’s policies and compliance controls, including efforts to circumvent applicable export control laws and regulations. Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations,” Super Micro Computer Inc. (NASDAQ:SMCI) said in a statement.

It underscored that it has not been named as a defendant in the indictment.

While we acknowledge the potential of SMCI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMCI and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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