Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock plummeted 27% in Friday morning trading after federal prosecutors charged three company associates, including a co-founder, with illegally smuggling AI servers to China.

Shares of Super Micro plunging after U.S. Attorneys charge 3 company employees with smuggling NVIDIA chips to China. The Investment Committee debate the story and what it could mean for some of Super Micro's competitors.

A senior vice president of Super Micro Computer Inc. and two others affiliated with the company were charged Thursday with conspiring to smuggle billions of dollars of computer servers containing advanced Nvidia chips to China.

Super Micro Computer, Inc. (NASDAQ: SMCI) ("Supermicro" or the "Company") today issued the following statement:

Super Micro Computer's (SMCI) 33% single-day collapse left a trail of destruction across its options chain — but the data tells a more nuanced story than it might first appear. Super Micro Computer shares closed at $20.

Dell Technologies stock jumped Friday as the computer maker is expected to benefit from serious issues at rival Super Micro Computer.

US authorities have indicted a co founder of Super Micro Computer and several employees for alleged export control violations tied to AI capable servers shipped to China. The individuals are accused of sending advanced server systems to restricted Chinese customers in breach of US export laws.

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of Jim Cramer’s latest stock calls as oil drops and the U.S. market rises.