New York, March 20, 2026, 17:17 EDT
Shares of Super Micro Computer slid 33.2% to $20.53 on Friday, following news that U.S. prosecutors had charged co-founder Yih-Shyan “Wally” Liaw and two others with illegally funneling billions worth of AI servers to China, allegedly sidestepping export controls. After hours, the stock clawed back roughly 2%, as the company announced Liaw’s resignation from the board. Reuters
The selloff doesn’t just hit for a day. Super Micro, a key supplier of AI servers loaded with high-end graphics chips—critical for training and deploying AI—only bumped up its fiscal 2026 revenue forecast to at least $40 billion last month. Back then, CFO David Weigand called “order strength… strong,” and Emarketer’s Gadjo Sevilla noted the company’s growth is tied to its status as an integrator for big cloud and AI clients. Reuters
According to prosecutors, Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun allegedly funneled about $2.5 billion worth of Super Micro servers through a Southeast Asian intermediary during 2024 and 2025—servers that would then pass through Taiwan and Southeast Asia on their way to China. The Justice Department said that in just a few weeks, from late April to mid-May 2025, at least $510 million in servers were redirected this way.
Export controls—government rules mandating approval before shipping sensitive tech overseas—got even stricter in 2022, as Washington clamped down on exports of advanced AI chips and servers to China. Officials argue the hardware might boost Beijing’s military capabilities and accelerate its AI ambitions.
Super Micro noted it isn’t a defendant in the case, has worked with investigators, and has put Liaw and Chang on administrative leave, also ending its relationship with Sun. According to the company, the alleged actions violate its compliance protocols and company policies.
After hours, the company was back in motion. According to a March 20 filing, Liaw stepped down from the board with immediate effect. DeAnna Luna—who came aboard in 2024, following stints in trade compliance at Intel and Teledyne—has been tapped as acting chief compliance officer, Super Micro said.
Traders wasted no time identifying potential winners. Dell, which competes with Nvidia in AI servers, gained 0.8% at $157.67. Nvidia, meanwhile, slipped 3.1% amid a selloff across tech. “Further investigation, audits, costs”—and the risk to reputation—will be in the spotlight, Gabelli Funds’ Hendi Susanto told Reuters. Dell, with its scale and tighter relationship with Nvidia, is the main beneficiary here, according to Melius Research, Reuters noted. Reuters
The next issue: just how much fallout could spread. Super Micro hasn’t been charged, but the threat of a broader compliance review, stricter scrutiny on suppliers, or skittish customers could drag on orders. In its 2025 annual report, the company flagged late filings, ongoing fixes to internal controls, and the risk of negative headlines as potential threats to both business and customer trust.
Super Micro saw its market cap hit $67 billion in 2024 amid an AI-fueled rally, but margin concerns and doubts over its credibility have since dragged the shares lower. The rout accelerated on Friday, forcing investors to weigh robust Nvidia-related orders against another hit to the company’s reputation.
