Shares of Super Micro Computer came under severe selling pressure right from the opening bell, crashing 29% to the day’s low of $21.85 apiece — also the lowest level since November 2024 — after US prosecutors charged several company employees with smuggling Nvidia chips to China.
The US Justice Department reportedly charged three company officials, including a co-founder, with illegally selling Nvidia chips to China.
According to a Bloomberg report, US prosecutors charged Yih-Shyan “Wally” Liaw in a scheme to send US-assembled servers containing Nvidia’s cutting-edge chips to China in violation of US export controls.
Liaw and two others associated with the company allegedly sold the AI technology through a Southeast Asian firm, knowing it would ultimately be routed to China. Liaw is a co-founder of Super Micro Computer and a member of its board of directors.
Also charged in the case were Ruei-Tsang “Steven” Chang, who served as a manager in the company’s Taiwan office, and Ting-Wei “Willy” Sun, an outside contractor described by US authorities as a “fixer” who allegedly aided in the diversion, the report said.
They allegedly moved at least $2.5 billion worth of US AI technology, including over half a billion dollars shipped between April and mid-May 2025, the department said.
The indictment marks the biggest chip-smuggling case pursued by US prosecutors since restrictions on Nvidia shipments to China were first imposed in 2022. It follows several smaller-scale arrests last year after the Trump administration pledged to crack down on violations of rules aimed at preventing China from using American AI accelerators for military advancement.
The US imposed chip export controls in 2022 to ensure Beijing’s military would not benefit from US technology and to slow the development of China’s AI capabilities.
Super Micro is a major assembler of AI servers containing Nvidia’s advanced components, competing with firms such as Foxconn Technology Group. The San Jose, California-based company accounts for about 9% of Nvidia’s revenue, according to Bloomberg data.
Liaw, a US citizen, and Sun, a Taiwanese citizen, were both arrested on Thursday, according to a statement from the office of Manhattan US Attorney Jay Clayton. Chang, also a Taiwanese citizen, remains a fugitive.
The Bloomberg report also stated that Super Micro has placed Liaw and Chang on administrative leave and ended its relationship with Sun. The company added that it is cooperating with the government’s investigation and will continue to do so.
Super Micro Computer shares are now down 82% from record highs
Today’s crash in Super Micro Computer shares has contributed to a 31.4% decline so far in March, taking its year-to-date losses to 24%. Shares of the Nasdaq-listed company have been under sustained selling pressure since November 2025 and have fallen 58% since then, based on today’s low.
The prolonged decline has widened the gap from its record high to 82%. In March 2024, the stock had touched a peak of $122.90 apiece.
Between February 2023 and March 2024, the stock witnessed a near one-way rally, delivering a massive return of 1,300%.
(With inputs from Bloomberg)
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