Super Micro Computer (SMCI), the San Jose based server maker known for its high density AI computing racks built around Nvidia chips, is back in the headlines for a reason investors would rather avoid: a widening Taiwanese criminal probe into alleged illegal exports of its AI hardware to China. Shares fell 4.81% to 27.65 dollars on the news, a decline that lands the stock well below its 52-week high and reignites questions about governance at a company still working to rebuild credibility after last year's accounting turmoil.
At a Glance
- Share price: 27.65 USD, down 4.81% on the day
- 52-week range: 25.46 to 51.40 USD
- Market capitalization: 18.97 billion USD
- P/E ratio: 13.23
- RSI: 40.47
| Price | 27.65 USD |
|---|---|
| Day change | -1.41 (-4.81%) |
| 52-week range | 25.46 – 51.4 |
| Market cap | $18.97B |
| P/E ratio | 13.23 |
| EPS (ttm) | 2.09 |
| RSI (14) | 40.47 |
| Volume | 52,033,746 |
A Second Round of Detentions in Taiwan
Taiwan's Keelung District Prosecutors' Office confirmed that two employees at Super Micro's Taiwan unit have been detained pending a court hearing, while two others were questioned and released on bail. The four were among six individuals brought in for questioning this week as part of an expanded investigation into alleged document forgery and breach of trust tied to the export of advanced AI servers. Those servers, built by Super Micro and populated with Nvidia processors, fall under U.S. export controls that bar their sale into China.
Prosecutors carried out searches across a dozen locations, including the homes of the six suspects and the offices of three companies: Super Micro's own Taiwan subsidiary, its local distributor Albatron Technology, and Chief Telecom, a data center operator. The scope of the raids signals that investigators are tracing the server supply chain beyond Super Micro itself, into the distribution and hosting layers where diverted hardware could have changed hands.
Company's Response and Legal Position
In a letter sent to customers in the United States, Super Micro's Chief Revenue Officer Matthew Thauberger acknowledged that the four employees were questioned on June 29 in connection with the sale of products to a Taiwanese technology company. Two were detained pending a hearing; two were released on bail. Thauberger was explicit on one point:
