Investing.com -- Bank of America lowered its price target on Super Micro Computer to $24 from $34, citing increased risks after U.S. authorities indicted three individuals tied to the company over alleged export-control violations.

The indictment, unsealed by the U.S. Attorney’s Office in New York, relates to a conspiracy to sell servers containing restricted GPUs into China.

Two employees have been placed on administrative leave, while a contractor has been terminated. A senior executive and board member named in the case has resigned.

BofA said the company itself is not a defendant, but the development could weigh on its reputation and operations.

The brokerage warned the episode may lead suppliers to tighten access to key components, including GPUs, or impose stricter compliance checks. It also said customers could delay orders or shift contracts to rivals such as Dell Technologies and Hewlett Packard Enterprise.

BofA maintained its Underperform rating, citing continued margin pressure from competition, higher component costs and increased spending on engineering and services. It expects gross margins to remain well below prior levels.

While revenue growth has been strong, the bank said it could come under pressure if large deals become more competitive or face delays.

The report also flagged ongoing issues with internal controls, noting the company disclosed multiple material weaknesses in financial reporting as of the end of 2025.

BofA kept its revenue and earnings estimates unchanged but reduced the valuation multiple to reflect higher risk, shifting to a lower earnings multiple basis for its revised price target.