Super Micro Co-Founder Indictment Triggers Massive 65% Sell-Off
Super Micro Computer’s co-founder was indicted for circumventing US export restrictions to China, prompting major fund managers to exit positions and the resignation of Yih-Shyan Liaw. Since peaking at $60.71 on July 30, shares have plunged about 65% and are down 27% this year due to compliance concerns.
1. Indictment and Leadership Changes
Super Micro Computer Inc.’s co-founder Yih-Shyan “Wally” Liaw was indicted for allegedly circumventing US export restrictions to China, triggering his resignation and the appointment of an acting chief compliance officer as the company cooperates with investigators.
2. Investor Exodus and Fund Manager Reactions
Major investment managers, including those running the Tortoise AI Infrastructure ETF and Zacks Investment Management, liquidated their positions, citing the C-suite’s involvement and describing the stock as uninvestable while evaluating the materiality of alleged fraud.
3. Volatile Stock History
Shares soared to an all-time high of $118.81 in March 2024 before sliding about 65% from a July 30 $60.71 peak and losing 27% year-to-date, following earlier Nasdaq filing delays in 2019 and last year that nearly led to delisting.