Supermicro finds itself in yet another scandal.

A new indictment alleges that three men affiliated with server maker Supermicro conspired to sell $510 million in servers with banned Nvidia chips to China

SMCI stock tanked more than 25% in early trading as investors learned that Yih-Shyan “Wally” Liaw – a co-founder – and board member allegedly participated in a backdoor operation to divert $2.5 billion worth of restricted Nvidia-powered servers to Chinese entities.

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

People connected to the server company have been charged with conspiring to deliver restricted tech to China. Supermicro is not named as a defendant. Shares in Super Micro Computer (Nasdaq: SMCI) are falling off a cliff this morning after news that the U.

Super Micro Computer Inc. (Supermicro) has announced a swift and significant restructuring of its executive leadership following the unsealing of a federal indictment charging its co-founder and other high-level employees with orchestrating a massive scheme to illegally export advanced AI technology to China.

Dell Technologies stock jumped Friday as the computer maker is expected to benefit from serious issues at rival Super Micro Computer.