Super Micro Computer stock fell after U.S. prosecutors revealed an alleged illegal export scheme involving Nvidia-powered AI servers shipped to China.

Super Micro Computer Shares Slide After Export Probe

Super Micro Computer (SMCI) shares fell nearly 1.2% in premarket trading on Thursday after the company confirmed it is cooperating with Taiwanese authorities in an ongoing investigation.

Officials seized more than 50 servers and arrested three individuals linked to the alleged operation. Prosecutors claim the servers contained advanced Nvidia AI chips that were illegally shipped to China.

Authorities said the servers were originally purchased through an authorized Super Micro Computer distributor. The products later moved through several third-party channels before reaching Chinese buyers.

Former Employees Face Federal Charges

Federal prosecutors charged Yih-Shyan “Wally” Liaw, Ruei-Tsan “Steven” Chang, and Ting-Wei “Willy” Sun with violating U.S. export control laws.

Investigators allege the group helped move high-performance AI servers containing Nvidia GPUs to China without approval from the U.S. Commerce Department.

Liaw helped found Super Micro Computer in 1993 and later joined the company’s board in 2023. Chang worked as a regional sales manager in Taiwan, while Sun operated as an outside contractor.

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Prosecutors Describe Alleged Concealment Methods

Court documents claim the accused used several techniques to hide the shipments from regulators.

Investigators say the group removed serial numbers and identification labels from real servers using heat tools. They then attached those labels to replacement hardware while the original systems moved to China through Southeast Asian intermediaries.

Prosecutors estimate the operation generated nearly $2.5 billion in revenue since 2024. Authorities also claim transactions worth about $510 million took place between late April and mid-May 2025.

The investigation has increased concerns around illegal transfers of AI server technology and advanced semiconductor hardware.

Supermicro Responds to Allegations

Super Micro Computer stated that its compliance procedures already exceed current regulatory standards. The company also said it is cooperating with authorities in the United States, Taiwan, and other regions.

Supermicro added that independent downstream entities handled the products after they left the company’s approved distribution network.

Court Trial Expected in November

Court records show Liaw and Sun pleaded not guilty during a recent hearing in New York. Chang remains outside U.S. custody.

Officials expect the trial to begin in early November.

Reports have also connected the investigation to a cancelled agreement involving Oracle. However, authorities have not independently confirmed those claims.

Strong Earnings Support Supermicro

Despite the controversy, Super Computer recently posted stronger-than-expected fiscal Q3 2026 earnings.

The company reported adjusted earnings per share of $0.84. Analysts had expected earnings of $0.62 per share. Supermicro also generated nearly $33.7 billion in trailing twelve-month revenue.

The company recently appointed Matthew Thauberger as Chief Revenue Officer as it continues expanding its AI infrastructure business.

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Conclusion Micro Computer

The investigation has created fresh pressure on Super Micro Computer stock as regulators continue tightening restrictions on advanced AI hardware exports to China.

Investors will closely watch the upcoming court proceedings and future regulatory developments. The case could also affect confidence in the rapidly growing AI server market.

Source: CNBC | Super Computer | U.S. Commerce Department