Super Micro Computer (SMCI) faces reputational and compliance risks after the SDNY unsealed an indictment against three individuals tied to the company for allegedly conspiring to export Nvidia (NVDA) GPU-based servers to China illegally, Raymond James tells investors in a research note. While the company is not a defendant and is cooperating with authorities, the incident adds to existing governance and reporting concerns, and is a “bad look,” as it could trigger increased regulatory scrutiny, and may affect customer trust and supply chain relationships, the firm says. Raymond James has an Outperform rating on the shares.
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