Super Micro, run by Jensen Huang’s friend, says Megaspeed was ‘never’ its customer

Super Micro Computer (SMCI) shares fell 33% in a month due to probe concerns and profit margin declines. Analyst Simon Leopold maintains a $65 price target, seeing 141% upside. Q3 sales rose 298% YoY to $19.9B, but gross margin dropped to 12.8%. One customer accounted for 44% of sales.

Super Micro Computer (SMCI) shares fell 3% to $26.23 amid a DOJ smuggling probe report, extending a 32% drop over the past month. Dell (DELL) and NVIDIA (NVDA) also declined, by 8% and 4% respectively, due to broader tech sector weakness and AI hardware selloff. Super Micro reported Q4 FY2026 revenue of $11.12 billion, up 93.2% YoY, but faces export control issues and a DOJ inquiry.

CoreWeave (CRWV) and Super Micro Computer (SMCI) reported strong AI-driven earnings, but Nvidia's (NVDA) CEO Jensen Huang's exit and a DOJ probe into Super Micro have impacted their stocks. CRWV's Q3 revenue rose 168.3% to $3.66B, while SMCI's Q1 revenue surged 298% to $19.9B, with AI products making up 71% of sales. Both stocks fell following the news.

Super Micro Computer shares dropped 12% after a federal inquiry into suspected smuggling of its products to China. Prosecutors are investigating groups linked to Alice Huang, an executive at Megaspeed. Super Micro denied Megaspeed as a customer and said it cooperated with authorities. An indictment in March charged co-founder Yih-Shyan Liaw and others over alleged export control breaches.

Super Micro (SMCI) stock dropped 12% after reports of a federal probe into potential smuggling of its products to China by groups tied to Alice Huang. The company denied any wrongdoing and stated Megaspeed, where Huang is an executive, is not a customer. Super Micro has faced previous legal issues, including an SEC penalty and an auditor resignation. Dell (DELL) stock remained flat after an early drop.

Super Micro Computer (SMCI) rose 1.7% in after-hours trading after denying reports that Megaspeed was a customer. The company is under U.S. Justice Department scrutiny regarding export controls. SMCI's Q1 revenue quadrupled to $19.9B, with adjusted gross margin at 12.8%. The company cooperated with officials, but the inquiry's impact on future sales remains uncertain.