Super Micro Computer Faces Federal Investigation, Stock Takes a Hit
Super Micro Computer Stock Plunges Due to DOJ Investigation
Super Micro Computer's stock price fell sharply on Thursday after the Wall Street Journal reported that the Department of Justice (DOJ) is investigating the server maker. Shares of the company, which boasts a market capitalization of nearly $24 billion and has gained traction from heightened investor interest in artificial intelligence, dropped $54, or roughly 12%, in afternoon trade.
Details of the Investigation
The Journal cited sources close to the situation, indicating that the Justice Department has initiated a probe into Super Micro, which is currently in its early stages. This investigation follows a critical report released in August by Hindenburg Research, an investment firm known for its short-selling activities.
- Impact on Stock Price: The stock's decrease indicates market volatility.
- Investor Sentiment: Concern over the company's future may arise from the investigation.
- Market Capitalization: The company is valued at $24 billion, making this a significant situation for investors.
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