Shares of Super Micro Computer, a developer of modular server and storage solutions, are attempting to recover from recent losses, as the stock surged another 9% in Wednesday’s trade, 25 March, to hit an intraday high of $24.16 apiece. This marks the third consecutive session of gains, taking the cumulative rise to nearly 18%.
The stock had come under heavy selling pressure during Friday’s session (March 20), plunging 33% in a single day — its sharpest one-day decline in recent times. The decline wiped out billions from Super Micro’s market capitalisation and dragged the stock to a new 52-week low on heavy volumes.
The sell-off followed reports of a federal indictment alleging a $2.5 billion AI server export-control scheme involving shipments to China, heightening legal and reputational concerns among investors.
Earlier, in October 2024, the stock witnessed a similar crash when it fell over 30% following the resignation of the company’s auditor, raising concerns over its internal controls and accounting practices.
On 19 March, the US Justice Department reportedly charged three individuals with conspiring to evade US export laws by shipping artificial intelligence (AI) technology to China. Among them was Super Micro co-founder Wally Liaw, who also serves on the company’s board of directors.
The accused allegedly moved at least $2.5 billion worth of US AI technology, including over $500 million shipped between April and mid-May 2025. The indictment marks the largest chip-smuggling case pursued by US prosecutors since restrictions on Nvidia shipments to China were first imposed in 2022.
While Super Micro itself has not been charged, investors remain concerned about the company’s governance and compliance practices, which have once again come under scrutiny.
The US imposed chip export controls in 2022 to prevent China’s military from accessing advanced American technology and to curb the development of its AI capabilities. Super Micro is a key assembler of AI servers powered by Nvidia’s advanced chips and competes with companies such as Foxconn Technology Group. According to Bloomberg data, the company accounts for nearly 9% of Nvidia’s revenue.
Despite these challenges, the company’s core business fundamentals remain strong. Super Micro continues to benefit from robust demand for AI infrastructure, which is driving its growth momentum.
Super Micro Computer shares are still down 26% in March
Although the stock has seen a recent rebound, it remains down 26.4% so far in March, while year-to-date losses stand at 18.5%. Shares of the Nasdaq-listed firm have been under sustained pressure since November 2025, declining 57% over this period based on Tuesday’s closing price.
The prolonged sell-off has widened the gap from its record high to nearly 82%. The stock had hit a peak of $122.90 apiece in March 2024. Between February 2023 and March 2024, it witnessed a near one-way rally, delivering an extraordinary return of about 1,300%.
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