Super Micro Computer Stock Falls 1.56% After Issuing Letter to Deny Nvidia Chip Smuggling Investigation Involvement

According to Barron's, Super Micro Computer (SMCI) issued a public letter on Thursday denying it is a subject of a Taiwan investigation into alleged Nvidia chip smuggling to China, as the company seeks to reassure customers and investors. The stock fell 1.56% to close at $27.22, extending losses from a 6% drop the prior trading day and a cumulative 23% decline over the past eight trading days.

The company confirmed that four employees were questioned by Taiwan's prosecutors on Monday in connection with product sales to a Taiwan technology company, with two detained and two released on bail. All four have been administratively suspended. In its statement, Super Micro's Chief Revenue Officer Matt Thauberger assured clients and partners that the investigation would not affect the company's ability to continue serving them.