Super Micro Computer stock falls to $28.90 following a raid linked to alleged chip smuggling, adding to governance concerns.
Super Micro Computer (SMCI) shares fell $1.75, or 5.7%, to $28.90 after Taiwanese authorities raided its offices as part of a chip smuggling investigation. The stock hit a low of $27.82 before the news broke, reflecting investor unease over the probe’s potential implications.
The company, a key supplier of AI servers due to its Nvidia partnership, has faced repeated governance and accounting issues. Past incidents include a 2018 Nasdaq delisting, SEC charges in 2020, and a 2024 Hindenburg Research report alleging financial misconduct. Ernst & Young resigned as auditor in 2024, citing internal control concerns.
While SMCI has not been formally charged, the raid underscores ongoing regulatory scrutiny. The stock’s decline highlights market sensitivity to legal and compliance risks amid its rapid growth in the AI sector.