Super Micro (SMCI) Takes Another Hit as Fresh Probe Weighs on Shares

Super Micro Computer Inc. (NASDAQ:SMCI) is one of the 10 Stocks Underperforming the Broader Market.

Super Micro Computer saw its share price decline by 11.30 percent on Thursday to close at $26.99 per share, as investors disposed of positions following news that the Department of Justice has initiated a probe into alleged smuggling of its products into China.

According to reports, the US Attorney’s Office in Manhattan is investigating whether Alice Huang, alleged mistress of ex-Nvidia Corp. CEO Jensen Huang and who was tagged as a Chinese spy, helped smuggle Super Micro Computer Inc. into China. Other companies, namely Nvidia and Megaspeed International, are also facing a probe.

For illustration purposes only. Photo by Brett Sayles on Pexels

In response, Super Micro Computer Inc. said that it is cooperating with authorities in relation to the case.

The decline can also be attributed to Nvidia’s slide to a new 52-week low following Huang’s resignation, effective immediately, after admitting to having extramarital affairs with Alice.

It can be learned that Nvidia Corp. and Super Micro Computer Inc. share a decades-long of partnership, with the latter acting as a premier, early-stage integration partner for Nvidia’s cutting-edge graphics processing units and AI platforms.

Super Micro Computer Inc. is known for its speed-to-market, turning Nvidia chips into custom server racks, liquid-cooling systems, and total data center solutions faster than many competitors.

READ NEXT: 10 Stocks Analysts Are Upgrading Right Now and Jim Cramer’s Top 10 Dividend Stocks for Safe, Consistent Returns

Follow Insider Monkey on Google News.