Super Micro Computer shares rose 6.3% to close at $35.58 on Friday, recovering from earlier uncertainty as traders weighed a new investigation by Taiwanese prosecutors into suspected illegal exports of the company's advanced AI servers to China. The stock opened at $33.80, reached a high of $35.94, and saw about 39 million shares change hands.
Market Context and Nvidia Boost
The broader market rally, fueled by Nvidia's stronger-than-expected quarterly results, provided a tailwind for AI hardware stocks. Nvidia projected second-quarter revenue of $91 billion, surpassing analyst estimates, and reported data-center revenue of $75.2 billion. This reinforced optimism about sustained demand for AI infrastructure, benefiting companies like Super Micro that supply servers and components for AI model training.
U.S. stocks broadly advanced, with the Dow Jones Industrial Average closing at a record high and the S&P 500 notching its eighth consecutive weekly gain. The positive sentiment ahead of the Memorial Day weekend lifted many tech and semiconductor names.
Export Probe Details
On Thursday, Taiwanese prosecutors announced they are investigating three individuals accused of exporting Super Micro AI servers equipped with Nvidia chips to China, Hong Kong, and Macau using falsified documents, in violation of U.S. export restrictions. Neither Super Micro nor Nvidia commented on the probe, but both companies have previously stated they comply with all applicable export laws.
This investigation follows U.S. Justice Department charges filed in March against three individuals linked to Super Micro, including a co-founder, for allegedly attempting to smuggle at least $2.5 billion worth of American AI technology to China. Super Micro was not charged in that case and said it cooperated with investigators.
Financial Outlook and Risks
Super Micro's fiscal fourth-quarter revenue forecast ranges from $11 billion to $12.5 billion, with fiscal 2026 revenue projected between $38.9 billion and $40.4 billion. The company reported third-quarter net sales of $10.2 billion and net income of $483 million. CEO Charles Liang emphasized the company's accelerating transition to a full data-center infrastructure business, with production sites in Taiwan, Malaysia, and the Netherlands ramping up aggressively.
CFO David Weigand noted on the earnings call that supplier allocations from Nvidia, AMD, and Intel remain unchanged, according to Reuters. However, the company flagged several risks in its earnings release, including potential impacts from an independent board review of export-control issues, larger customers, thinner margins, tariffs, and uneven sales patterns.
Dell Technologies also surged 16.8% to a record close, highlighting strong AI infrastructure demand ahead of its May 28 earnings report. Analysts see server stocks like Super Micro as key beneficiaries of Nvidia's growth, though questions remain about the durability of the AI buildout beyond 2027.
U.S. markets are closed Monday for Memorial Day, with investors awaiting Tuesday's trading to see if AI server demand can outweigh the legal overhang.
