Taiwan Raid on Super Micro Sinks Nvidia Shares as Chip Probe Widens

With trade tensions escalating between Washington and Beijing, Taiwan's raid on Super Micro Computer offices as part of an investigation into alleged smuggling of Nvidia chips to China adds to regulatory pressure on the semiconductor sector. According to reports, Taiwanese authorities raided the offices over potential violations of export bans, causing Super Micro's shares to drop sharply. Taiwan is also considering criminalizing such chip exports to provide stronger legal tools.

The developments come as the U.S. tightens restrictions on advanced AI chip exports to China, affecting companies like Nvidia. Nvidia shares closed at $194.72 on June 29, per market data, while Taiwan-based TSMC closed at $439.66. Both AMD and Intel face similar scrutiny amid rising regulatory oversight, with AMD closing at $521.58 and Intel at $128.32 at the end of last week.

Investors are now focused on whether Nvidia can hold support near $189.80 (the June 29 low) as the probe unfolds. Any further escalation in trade tensions or punitive steps from Taiwan could serve as a negative catalyst for the stock. Markets are also watching for any statements from the Biden administration or the U.S. Commerce Department regarding an expansion of export restrictions.