TLDRSuper Micro stock fell as much as 12% Thursday after a report of a federal probe.Manhattan prosecutors are reportedly checking if groups tied to Alice Huang tried to smuggle its products into China.The company says Megaspeed, where Huang is an executive, has never been a customer.Super Micro has a record of an SEC penalty, an auditor exit and a March indictment.Dell stock ended about flat after a sharp early drop.Super Micro (SMCI) stock dropped as much as 12% on Thursday after a report of a new federal probe. At one point in the session, the loss was closer to 9%.Super Micro Computer, Inc., SMCIBloomberg reported that the US Attorney’s Office in Manhattan is leading the inquiry. The report cited a person familiar with the matter.Investigators are looking at whether groups tied to Alice Huang tried to smuggle Super Micro products into China. Huang is an executive at Singapore-based Megaspeed.Nvidia (NVDA) stock slid about 4% the same day. Its CEO, Jensen Huang, resigned Thursday after admitting to an affair.The company pushes backSuper Micro said Megaspeed is not, and has never been, one of its customers. That line came in a statement released Thursday.The company also said it has cooperated fully with US and Taiwanese officials. It has given information to Singapore authorities as well.The Justice Department declined to comment. The US Attorney’s Office did not reply to a request for comment.Alice Huang is also suspected of spying for the Chinese government. The Justice Department is already looking into a chip-smuggling campaign tied to her and Megaspeed.A record that keeps growingSuper Micro has been in this spot before. In 2020, the SEC charged it with widespread accounting violations, and it paid a $17.5 million civil penalty.In 2024, Hindenburg Research questioned the company’s accounting. Its auditor, EY, later resigned over concerns about transparency and internal controls.In March, prosecutors unsealed an indictment against co-founder Yih-Shyan “Wally” Liaw and two others. It alleged a scheme to send servers to China in violation of export controls.Liaw resigned right away. Taiwanese investigators later raided Super Micro’s office and other sites in Taiwan as part of a wider probe into restricted Nvidia chips.In August, the company said an internal review led by independent board members was finished. It found no evidence that current senior managers knew of the alleged scheme.Super Micro said it added recommended upgrades to its export compliance program. Rival Dell (DELL) is up roughly 200% this year, and its stock ended Thursday about flat after a sharp early drop.The post Super Micro (SMCI) Stock Drops 12% on Report of New Smuggling Probe appeared first on Blockonomi.