Super Micro Computer Issues Denial Letter on Chip Smuggling Case, Stock Falls 1.56% on Thursday

According to Barron's, Super Micro Computer (SMCI) issued a public letter on Thursday (July 2) denying it is a target of Taiwan's investigation into alleged Nvidia chip smuggling to China, aiming to reassure clients and investors. The stock fell 1.56% to $27.22, extending losses after a 6% drop the previous day and a 23% decline over the past eight trading days.

In the letter, CEO Matt Thauberger confirmed that four company employees were questioned on Monday in connection with product sales to a Taiwan-based tech company. Two employees were detained pending trial, while two were released on bail; all four have been suspended. SMCI stated it is cooperating fully with investigators and emphasized it will continue serving clients and protecting U.S. interests and its advanced technology.