Federal prosecutors unsealed an indictment against Super Micro Computer co-founder Yih-Shyan “Wally” Liaw and two others. The group allegedly smuggled $2.5 billion worth of Nvidia-powered AI servers to China. They reportedly used intermediaries in Southeast Asia to bypass U.S. export controls.
Super Micro shares plunged 28.37% following the announcement. The company placed the implicated employees on administrative leave. Super Micro itself has not been charged in the case.
The scandal contributed to declines in the Nasdaq Composite and S&P 500 indices. Investors are now weighing the regulatory and reputational risks within the AI hardware supply chain.