The company is in the middle of an export scandal between the United States and China.

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.

The unfolding events at Super Micro Computer reveal deep tensions in the AI hardware supply chain. Dell’s established scale and customer trust appear set to play a larger role as market dynamics shift.

Supermicro finds itself in yet another scandal.

Shares of server leader Super Micro Computer (NASDAQ: SMCI) rallied 11.3% in February, according to data from S&P Global Market Intelligence. Super Micro had been a laggard among AI stocks over the past year and a half,