TLDR
- Super Micro co-founder Wally Liaw and two others were charged by the US government for allegedly diverting ~$2.5 billion worth of Nvidia-powered servers to China, violating export controls.
- Super Micro placed two employees on leave and fired a contractor after learning of their alleged involvement.
- Super Micro (SMCI) dropped over 25% in premarket trading Friday.
- Dell (DELL) rose around 3% in premarket as the market’s principal SMCI rival.
- Bloomberg Intelligence warned that reputational damage raises the risk of long-term customer losses for Super Micro.
Dell Technologies (DELL) stock climbed roughly 3% in premarket trading Friday after rival Super Micro Computer (SMCI) plunged more than 25% following criminal charges against a company co-founder over alleged export-control violations involving Nvidia chips.
The US Justice Department unsealed an indictment Thursday charging Yih-Shyan “Wally” Liaw — Super Micro’s senior vice president of business development, co-founder, and board member — with illegally diverting billions of dollars worth of AI servers to China.
Liaw and two others allegedly sold restricted Nvidia-powered servers through an Asia-based company, knowing the equipment would ultimately end up in China in violation of US export laws.
The other two individuals charged were Ruei-Tsang “Steven” Chang, a sales manager at Super Micro’s Taiwan office, and Ting-Wei “Willy” Sun, a contractor described by US authorities as a “fixer” who allegedly helped facilitate the scheme.
Between 2024 and 2025, the Asia-based company purchased around $2.5 billion worth of servers, which were then repackaged and shipped to China, according to the Justice Department.
Super Micro confirmed it placed its two employees on administrative leave and terminated the contractor after learning of the allegations.
The company was not named as a defendant in the indictment.
Super Micro’s Response
Super Micro said in a statement Thursday night that “the conduct by these individuals alleged in the indictment is a contravention of the Company’s policies and compliance controls.”
The company said it maintains a “robust compliance program” and is committed to full compliance with US export and re-export laws. It added that it has been cooperating with the government’s investigation.
This isn’t Super Micro’s first brush with serious trouble. In August 2024, the stock dropped sharply after a short seller raised concerns about its accounting practices, and the company delayed filing its annual 10-K report.
A board-appointed independent committee later found no evidence of fraud or misconduct, and the delayed filing was eventually submitted in February 2025 — narrowly avoiding a potential Nasdaq delisting.
Dell Picks Up the Pieces
Dell, as Super Micro’s principal competitor in the AI server market, was the immediate beneficiary of the news in trading Friday.
Bloomberg Intelligence analyst Woo Jin Ho noted that “given the reputation damage, risks for share losses to Dell are heightened long term” — meaning Super Micro could face customer defection.
Ho also said the indictment highlights what he sees as limited progress Super Micro has made in improving its financial controls.
Super Micro’s stock was down more than 25% in premarket trading and over 27% as markets opened Friday. Dell was up around 2–3% in the same window.
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