Bernstein keeps a Market Perform rating on Super Micro (SMCI) after three individuals associated with the company were indicted by the U.S. Attorney’s Office for allegedly conspiring to commit export-control violations. Despite SMCI not being named as a defendant, the news “raises serious credibility issues that could impact business,” the analyst tells investors in a research note. Bernstein wonders if Nvidia (NVDA) might feel the need to further distance itself from SMCI. If so, this could impact SMCI’s important supply of graphic processing units, which “could have devastating impact” on the business, the firm contends. The stock in premarket trading is down 26%, or $7.93, to $22.86.
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