Super Micro Computer shares were in freefall yesterday following reports that the U.S. Department of Justice is investigating the company over allegations that its products were involved in a smuggling scheme to move restricted technology into China. This regulatory scrutiny was compounded by broader uncertainty in the semiconductor sector, which faced significant volatility following the sudden resignation of Nvidia CEO Jensen Huang. While the stock had previously surged on the launch of new AMD-powered server systems, these gains were erased as investors weighed the legal risks of the potential DOJ probe against concerns regarding the sustainability of AI infrastructure spending.