Super Micro down 27% in premarket following export violation; Dell, HPE gain

Shares of Super Micro (SMCI) have extended their decline overnight, trading down 27% at $22.40 in pre-market. The company has confirmed that the United States Attorney’s Office for the Southern District of New York has unsealed an indictment of three individuals associated with Super Micro Computer related to an alleged conspiracy to commit export-control violations, namely diverting high-performance computer servers assembled in the U.S. to China, with one of them being a member of the Company’s Board of Directors. In turn, shares of Dell (DELL) and HP Enterprise (HPE) – Super Micro’s key competitors in Server solutions – are up 4.6% and 4.1% in pre-market respectively.