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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid escalating trade tensions in the semiconductor sector, Taiwanese authorities expanded their probe into the alleged smuggling of Nvidia's AI chips to China to include Super Micro Computer. Authorities raided the company's offices in Taiwan as part of the investigation, according to media reports. As a result, Super Micro shares dropped 7% to $28.57, reflecting market concerns over legal and regulatory risks.
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Sign InThese developments come at a time of heightened scrutiny over AI chip supply chains. According to market data, Nvidia shares closed at $194.35 (close June 29, 2026), while key supplier TSMC traded at $454 (close June 29, 2026). The widening probe indicates growing pressure on companies operating in Taiwan, especially as U.S. export restrictions on advanced chips to China remain in place.
Super Micro stock faces additional headwinds after the recent decline. The stock had closed at $30.63 before the raid (close June 26, 2026), meaning the drop represents significant losses in market value. Investors are watching for any official statements from Taiwanese authorities or Nvidia regarding the probe's future, as well as potential penalties that could affect the company's operations. Focus will also be on next quarter's results to gauge the impact of these developments.