Super Micro Computer Inc. (NASDAQ:SMCI) shares are sliding Thursday after a Semafor report said the company could face a Justice Department probe. Here’s what you should know.
- Super Micro Computer shares are sliding. Why is SMCI stock falling?
Super Micro Stock Falls On Report of DOJ Probe
Semafor’s sources, two administration officials, describe three separate Justice Department inquiries. One is an antitrust probe of NVIDIA Corp. (NASDAQ:NVDA), and the other two target Megaspeed and Supermicro.
Both of those reportedly turn on Alice Huang, who is alleged to have spied for China and who, former Nvidia CEO Jensen Huang acknowledged, was his extramarital partner.
Nothing indicates for now that the DOJ plans criminal charges against Nvidia or Huang, Semafor said. Neither Nvidia nor the DOJ responded to Semafor’s request for comment, and Supermicro and Megaspeed had not replied yet.
Nvidia dismissed Huang on Thursday, and Chief Financial Officer Colette Kress steps in on an interim basis while directors look for a permanent CEO. Nvidia stock dropped by as much as 7%, and AI cloud providers fell along with it, with Nebius and CoreWeave down by roughly 19% and 9%.
Supermicro makes servers that depend on Nvidia chips, so upheaval at Nvidia and federal attention on Supermicro itself may heighten regulatory and reputational risks for shareholders.
SMCI Shares Are Plummeting
SMCI Price Action: Super Micro shares were down 11.11% at $27.05 at the time of publication on Thursday, according to Benzinga Pro.
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