Super Micro Computer (NASDAQ:SMCI) shares are plunging 22% in pre-market trading this morning after the Justice Department announced it had arrested the company’s co-founder and two others for smuggling $2.

March 20 (Reuters) - Super Micro Computer said on Friday that Yih-Shyan Liaw has resigned from its board, effective immediately, after the co-founder was arrested by the U.S. Justice Department for helping smuggle billions of dollars of AI chips to China.

The AI-centric server specialist finds itself in the spotlight once again.

Super Micro (SMCI) shares crashed on Friday after three individuals linked to the company were charged with smuggling. A Seeking Alpha analyst called the AI server maker a “train wreck.”

(NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today unveiled one of the industry's first context memory (CMX) storage server as part of NVIDIA STX reference architecture announced at NVIDIA GTC 2026.

Supermicro finds itself in yet another scandal.

Advancing Enterprises' Adoption of Accelerated Computing Across AI Factory, Data Center, and Edge with Expanded Portfolio Featuring NVIDIA RTX PRO Blackwell Server Edition GPUs - New systems available in multiple form factors based on Supermicro's modular Building Block Solutions® to enable right-sizing for space,