Stock Market Today, March 26: Super Micro Computer Falls After Shareholder Lawsuits Over Smuggling Allegations
Super Micro Computer (NASDAQ:SMCI), a server and storage solutions provider, closed Thursday at $22.21, down 7.65%. The stock fell as investors reacted to fresh shareholder lawsuits tied to DOJ smuggling charges and analyst downgrades. The stock is reacting to ongoing legal developments and any updates on export-control risks.
Trading volume reached 53.3 million shares, coming in about 48% above its three-month average of 36.1 million shares. Super Micro Computer IPO'd in 2007 and has grown 2,435% since going public.
How the markets moved today
The broader markets pulled back Thursday, with the S&P 500 (SNPINDEX:^GSPC) dropping 1.74% to 6,477 and the Nasdaq Composite (NASDAQINDEX:^IXIC) sliding 2.38% to 21,408. Within computer and office equipment, industry peers Hewlett Packard Enterprise (NYSE:HPE) closed at $25.07 (-2.75%) and Dell Technologies (NYSE:DELL) finished at $175.82 (-4.45%), underscoring pressure across hardware names.
What this means for investors
It’s been a rough time for Super Micro shareholders. Shares tanked last week after a company co-founder was indicted for allegedly diverting AI servers to China. Today, a new shareholder class action lawsuit filed in California had investors bailing from the stock once again.
Super Micro shares have plunged by more than 25% just since late last week. Legal uncertainty surrounding allegations of smuggling technology to China has now been exacerbated by the prospects for new class action lawsuits.
It's common for investigations into potential class action lawsuits to occur when a publicly traded company's stock price falls. In this case, chip-smuggling indictments could support those investor complaints, too, though.
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Howard Smith has positions in Dell Technologies. The Motley Fool has positions in and recommends Hewlett Packard Enterprise. The Motley Fool has a disclosure policy.
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