After a period of relative calm through 2026 that saw only a limited, 0.55% drop and a modest, 1.45% rally in the regular session on March 19, the stock of Super Micro Computer (NASDAQ: SMCI) once more entered a free fall in the subsequent extended session.
Having fallen from its latest closing price of $30.79 to its press time price of $23.53 on March 20, SMCI shares are 23.58% down between the latest after-hours and the ongoing pre-market.
Why SMCI stock is crashing this March
The latest stock market collapse of the long-beleaguered equity is the result of a series of high-profile indictments and arrests.
Specifically, Supermicro co-founder, Yih-Shyan “Wally” Liaw, was arrested along with two alleged co-conspirators under the accusation that they attempted to divert and smuggle $2.5 billion worth of Nvidia (NASDAQ: NVDA) chips to China.
Notably, despite its shares being the most visible victim, Supermiro itself issued a statement late on March 19 in which it emphasized it is not a defendant and that it is cooperating fully with law enforcement.
Elsewhere, the March 20 extended session turbulence is merely the latest damaging chapter in the tumultuous story of SMCI.
SMCI stock’s staggering fall from grace
Starting in earnest in 2023 and culminating in March 2024, Supermicro spent a time as arguably the hottest technology stock in the market. Over the approximately 12-month period, the firm’s shares enjoyed a staggering rally that amounted to as much as 1,400%.
The bull run was, however, ended in the summer of 2024 due to both a damning report on Super Micro Computer’s operations published by the activist short-selling company Hindenburg Research, and then a series of delays in filling critical financial disclosures.
Though the possibility of SMCI making a comeback has long been speculated on, Supermicro stock closed on March 19 72.99% below the 2024 highs and, with its press time price of $23.53, its total fall from grace amounts to 79.36%.
Featured image via Shutterstock
