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Super Micro Plummets Amid Co-Founder's Indictment
31 Mar
Summary
- Co-founder indicted for evading US export bans to China.
- Stock price dropped 65% since July 2025 peak.
- Analysts split on AI server firm's future prospects.
Super Micro Computer Inc. finds its stock under pressure following a series of internal issues, most recently the indictment of co-founder Yih-Shyan Liaw on charges of evading US export restrictions to China. Liaw has resigned, and the company is cooperating with authorities, though neither the company nor CEO Charles Liang were named defendants. This incident follows previous troubles, including a near-delisting from the Nasdaq in 2024 due to missing financial reports.
Super Micro's stock has experienced significant volatility. After trading in single digits until 2023, it surged with AI demand, reaching an all-time high of $118.81 in March 2024. However, since a July 2025 peak of $60.71, the shares have fallen 65%, making it a notable underperformer in the S&P 500. Analyst sentiment is divided, with buy ratings dwindling.
Despite these challenges, some investors remain committed due to Super Micro's crucial role in AI infrastructure and its strong projected revenue growth, with over $40 billion anticipated for fiscal 2026. The stock's valuation also appears attractive, trading at a lower multiple than broader market indices. However, confidence hinges on the company demonstrating robust internal controls and proving the recent incident is isolated.
