On Thursday, shares of Super Micro Computer Inc. (NASDAQ:SMCI) fell about 11.85% after hours to $27.14, according to Benzinga Pro.

DOJ Charges Spark Sell-Off In AI Server Stock

The decline followed an announcement from the U.S. Department of Justice that three individuals were charged in an alleged scheme to unlawfully export artificial intelligence technology to China.

The individuals included the co-founder of the company, Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, a sales manager in Taiwan and Ting-Wei “Willy” Sun, a contractor

They "conspired to sell billions of dollars' worth of servers integrating sensitive, controlled graphic processing units to buyers in China, in violation of U.S. export control laws," stated assistant director Roman Rozhavsky of the FBI's Counterintelligence and Espionage Division.

The DOJ said the defendants "conspired to systematically divert" restricted technology to China without proper licenses.

Company Responds, Distances Itself

In a statement, SMCI said it was informed of the indictment and highlighted that the company itself was not named as a defendant.

"The conduct by these individuals alleged in the indictment is a contravention of the Company’s policies and compliance controls" the company said.

It added that it has placed the co-founder and another employee on leave and terminated ties with a contractor involved in the case.

The company also said it is cooperating with the government's investigation. SMCI did not immediately respond to Benzinga’s request for comment.

Super Micro Stock Momentum Weakens

Even as it deepens ties with Nvidia Corp (NASDAQ:NVDA) through the rollout of high-density Blackwell AI systems, SMCI has seen its momentum score sink to 12.82 this week.

This percentile-based metric suggests the stock is lagging most of the market when it comes to price performance and volatility trends.

SMCI shares have dropped 23.22% over the past year and are down 32.79% in the last six months. Data from Benzinga Edge's Stock Rankings also shows the stock is currently in a negative trend across short, medium and long-term time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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