By Adam Clark

Super Micro Computer was slipping again early Monday. The server maker looks to be in a tug-of-war between those betting it can recover from one of its co-founders being indicted for alleged export-control violations and those who fear more repercussions. For now, the latter are winning.

Super Micro shares were down 2% at $20.12 in early trading after wavering in premarket trading. The stock fell 33% on Friday after an indictment alleged two employees and one contractor working with the company aimed to transport artificial-intelligence servers containing restricted Nvidia chips to China.

Some are hoping Super Micro can shake off the episode. The company was not named as a defendant in the case and said it was cooperating fully with the government's investigation.

"The company is cooperating with the Department of Justice, [so] I do not expect Super Micro Computer to be charged," wrote Navellier & Associates founder Louis Navellier in a research note. "Since Super Micro Computer just posted 123% sales growth and its sales are forecasted to rise 171%, I expect that the stock will bounce."

On some metrics, Super Micro now looks like a bargain. It trades at a forward price-to-earnings ratio of around 7.4 times, according to FactSet. That compares with more than 12 times for its chief AI server rival Dell Technologies.

However, others are more circumspect considering the possibility that it will affect the company's crucial relationship with Nvidia.

"We are retaining our Neutral view on SMCI as we attempt to figure out the fall-out from this news, " wrote Wedbush analyst Matt Bryson. "[W]e see room for concern as to how this development might affect SMCI's business including its relationships with suppliers and customers."

In 2018, Super Micro was temporarily delisted from Nasdaq for failing to file financial statements. In 2020, Super Micro paid $17.5 million in to settle Securities and Exchange Commission allegations of accounting violations. In 2024, its accounting firm Ernst & Young resigned, citing an unwillingness to be "associated with the financial statements prepared by management", although a board-appointed independent committee found no evidence of fraud or misconduct.

Yih-Shyan "Wally" Liaw, a Super Micro co-founder, board member, and senior vice president of business development, was among the individuals charged. The company announced after Friday's closing bell that Liaw had resigned from the board. A day earlier, Super Micro said he had been put on administrative leave. Barron's was unable to contact Liaw.

Super Micro also said Friday it had appointed DeAnna Luna as acting chief compliance officer. Luna was previously vice president of global trade & sanctions compliance.

Write to Adam Clark at adam.clark@barrons.com

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March 23, 2026 09:36 ET (13:36 GMT)

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