SMCI dropped nearly 12% to ~$27.17 in after-hours after the DOJ unsealed charges alleging a multi-year scheme to illegally divert ~$2.5B in AI servers (with restricted GPUs) to China, violating US export controls.
Key points:
- Senior VP/board member Yih-Shyan "Wally" Liaw + 2 others indicted
- Servers allegedly repackaged/rerouted via Southeast Asia intermediary to obscure destination
- SMCI placed 2 employees on leave, terminated contractor
- Company has prior history (2024 accounting probe, delisting warning, auditor resignation)
Technical note: Price plunged below recent $30–$31 support. Next levels to watch: $25–$26 downside if momentum continues; any bounce needs volume above $30 to show stabilization.
High-risk, headline-driven setup. Volatility will remain extreme until more clarity from DOJ/court/company response.
Key points:
- Senior VP/board member Yih-Shyan "Wally" Liaw + 2 others indicted
- Servers allegedly repackaged/rerouted via Southeast Asia intermediary to obscure destination
- SMCI placed 2 employees on leave, terminated contractor
- Company has prior history (2024 accounting probe, delisting warning, auditor resignation)
Technical note: Price plunged below recent $30–$31 support. Next levels to watch: $25–$26 downside if momentum continues; any bounce needs volume above $30 to show stabilization.
High-risk, headline-driven setup. Volatility will remain extreme until more clarity from DOJ/court/company response.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.