Super Micro computers tend to be in the news for all the wrong reasons more than any other company. There is a news story being reported that their offices in Taiwan are raided on a chip smuggling probe. The shares are trading down $1.75 or -5.7% at $28.90. The low price just reach $27.82 before announcing.

I do not know the depth of the probe or the raid implications, but the company is habitually in trouble.

Despite being one of the biggest AI winners due to its close relationship with Nvidia, Super Micro Computer has a long history of accounting and governance issues:

• 2018: The company was delisted from Nasdaq after failing to file financial reports on time.
• 2020: The SEC charged SMCI with widespread accounting violations, including improperly recognizing revenue, understating expenses, and pulling future sales into earlier periods. The company settled the charges and paid fines.
• 2024: Short-seller Hindenburg Research alleged accounting manipulation, related-party transactions, and export-control concerns. SMCI denied the allegations.
• 2024: Auditor Ernst & Young resigned, citing concerns over governance and internal controls.
• 2024-2025: The DOJ and SEC opened investigations into the company’s accounting and business practices.
• 2026: Federal prosecutors charged several individuals tied to SMCI with illegally exporting AI servers and chips to China, though SMCI itself has not been charged.

An independent board review found no evidence of fraud or the need to restate financial statements. However, the company’s history of accounting issues, auditor concerns, and ongoing regulatory scrutiny

Looking at the stock chart, shares are trading at $28.79 and back below the 100 day MA at $31.07. The price has been trading above and below that MA and the 200 day MA at $35.27 over the last few weeks. Prior to that, the price ran to $51.35 reached on June 1, but reversed quickly to the downside. There is support near $27.80 (swing level). Move below it, and traders will be looking toward the low for the year at $19.48.

When SMCI, goes down, Dell goes higher. It’s shares are now up $13.40 or 3.3% at $412.80.

This article was written by Greg Michalowski at investinglive.com.