Super Micro Slides 3% as Reported DOJ Smuggling Probe Weighs for a Second Day; Dell Sinks 8%, NVIDIA Falls 4%

Detailed summary

The company named in the headline is falling the least, while Dell and NVIDIA take the bigger hits. A reported federal inquiry into China shipments is rattling AI hardware, and one question could decide whether the selling steadies.

A reported federal smuggling inquiry is keeping pressure on AI server makers for a second straight session. Super Micro Computer (NASDAQ:SMCI) stock is at $26.23, down 3% in morning trading, extending its steep November 12 drop. The past month has been rough, with Super Micro stock down 32% over that stretch.

Weakness across technology adds to Super Micro's pressure. The technology sector is the market's weakest group, down 3%, while the NASDAQ 100 is down 2%. Comments from Federal Reserve official Austan Goolsbee that inflation is "broad-based, going wrong way" are weighing on sentiment.

Bloomberg reported on November 12 that the Department of Justice (DOJ) is investigating whether entities linked to Alice Huang were involved in efforts to smuggle Super Micro products into China. U.S. officials reportedly suspect Alice Huang has ties to Chinese intelligence. According to Bloomberg, the U.S. Attorney's Office in Manhattan is leading the inquiry, and DOJ investigations can conclude without charges.

Citing two administration officials, Semafor reported multiple DOJ probes could involve NVIDIA (NASDAQ:NVDA), including one focused on antitrust concerns. Jensen Huang isn't a target of U.S. law enforcement investigations, Bloomberg said, and NVIDIA hasn't been named as a party to the Super Micro inquiry.

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In a statement, Super Micro said it "has been responsive to inquiries and has fully cooperated with US and Taiwanese officials." Megaspeed, the company added, "is not, and has never been, a Supermicro customer."

Export controls were already a sore spot for Super Micro. The company disclosed in its August 11 earnings release that its board was conducting an independent review of certain transactions related…

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