Why Super Micro Computer Stock Crashed 29.7% in March But Is Moving Higher in April

Supermicro shares plunged 33% in one day after the DOJ charged three people affiliated with the company for allegedly selling banned Nvidia chips to China. The criminal allegations materially increase legal and export-control risk for the company, raise the prospect of regulatory scrutiny and supply-chain disruption, and are likely to sustain elevated volatility and downside risk for the stock.

Analysis

Supermicro shares plunged 33% in one day after the DOJ charged three people affiliated with the company for allegedly selling banned Nvidia chips to China. The criminal allegations materially increase legal and export-control risk for the company, raise the prospect of regulatory scrutiny and supply-chain disruption, and are likely to sustain elevated volatility and downside risk for the stock.