Super Micro Drops 8% as Taiwan Raids Expand
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Super Micro Drops 8% as Taiwan Raids Expand Khac Phu Nguyen Tue, June 30, 2026 at 12:24 PM EDT 1 min read SMCI 6561.TWO 5386.TWO NVDA This article first appeared on GuruFocus . Taiwan authorities have widened their investigation into the alleged smuggling of Nvidia ( NASDAQ:NVDA ) chips into China through Super Micro Computer ( NASDAQ:SMCI ) servers. Investigators raided Super Micro's Taiwan office, several local affiliates, and the residences of six people on Monday, according to the Keelung District Prosecutors Office. The move could mark a deeper phase in Taiwan's first public crackdown on AI chip diversion, as pressure grows from Washington to limit China's access to advanced technology. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. Super Micro said it is cooperating with Taiwanese authorities and working to ensure its technology is distributed lawfully. The probe also reached Chief Telecom and Albatron Technology, with both companies indicating cooperation with investigators. Super Micro shares fell 8% in US trading, while Albatron dropped 10% in Taipei and Chief Telecom slid more than 2%, suggesting investors may be pricing in fresh headline risk around AI server exports. For investors, the issue could keep weighing on Super Micro's valuation even as its AI-server fundamentals remain favorable. Taiwan does not currently treat AI chip exports to China as a crime, but officials are considering tougher rules that could give prosecutors more tools to pursue alleged illicit AI hardware trade. Any move to tighten AI chip sales to China could also draw a response from Beijing, which continues to claim Taiwan as its own territory, a position Taiwan's self-ruled government strongly rejects.
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