Super Micro drops after report that U.S. telecom found manipulated hardware
Shares of Super Micro Computer (SMCI) are plunging in New York following a report that a U.S. telecommunications company discovered manipulated hardware for Super Micro in its network and removed it in August. WHAT'S NEW: A "major" U.S. telecommunications firm found manipulated hardware from SMCI in its network and removed it two months ago, Bloomberg reports, citing Yossi Appleboum, a security expert working for the telecom company. Bloomberg did not identify the U.S. telecom in question due to Appleboum's nondisclosure agreement with the client. WHAT'S NOTABLE: The news follows a Bloomberg report from last week saying that Super Micro Computer was mentioned as being implicated in a Chinese scheme to spy on American companies, including Amazon (AMZN) and Apple (AAPL). The company "strongly" refuted the claims, saying that it has "never found any malicious chips, nor been informed by any customer that such chips have been found." PRICE ACTION: At midday, shares of Super Micro Computer trading in New York were lower by over 27% to $10.76.