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Super Micro Shares Fall After Report of DOJ Probe Into Alice Huang

Super Micro Computer shares fell as much as 10% after Bloomberg reported that federal prosecutors in Manhattan are investigating whether entities linked to Alice Huang helped route the company’s products into China. The report cited a person familiar with the matter; the Justice Department has not commented publicly.

Super Micro Shares Fall After Report of DOJ Probe Into Alice Huang

The stock was down 5.8% at $28.67 after touching $25.70 following the report. Super Micro shares have fallen 2% this year. Bloomberg said the U.S. attorney’s office in Manhattan is examining whether entities linked to Huang were involved in routing the company’s products to China. Super Micro, the Justice Department and the Manhattan U.S. attorney’s office declined to comment, Bloomberg reported.

Huang had previously been identified as having a relationship with former Nvidia Chief Executive Jensen Huang, who resigned from the role on Thursday. U.S. officials believe Alice Huang is a Chinese intelligence source, and Nvidia’s independent board members had begun investigating whether the former CEO was the target of a foreign espionage effort.

Super Micro, an Nvidia partner and supplier, was already under pressure amid reports about Jensen Huang’s relationships with Alice Huang and an Nvidia executive, followed by his resignation. Earlier this year, federal authorities indicted two Super Micro employees, including executive Yih-Shyan “Wally” Liaw, alleging they took part in a scheme to divert servers assembled in the U.S. to China. Liaw resigned after the indictment. A later investigation by independent board members said it found no evidence that senior leadership knew about the alleged scheme.

Bloomberg reported that it was unclear whether the latest Justice Department probe is connected to existing chip-smuggling cases involving Super Micro.

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