New York, July 2, 2026, 15:03 EDT
- Super Micro Computer, Inc. NASDAQ:SMCI slipped 2.8% to $26.87 in the last available quote before the dateline. Shares earlier reached $29.20.
- Supermicro gave up about $1.61 billion from its high to its latest close, based on the current diluted share count. That’s more than triple its net income in fiscal Q3.
- Supermicro said two staff in Taiwan are still detained, with two others out on bail. Chief Revenue Officer Matt Thauberger said officials told the company it is “not a target of this investigation.” Supermicro
Super Micro Computer, Inc. NASDAQ:SMCI gave up early gains Thursday. The stock’s initial rise faded as a relief rally tied to the Taiwan probe reversed, wiping out about $1.61 billion intraday before the final hour on the Nasdaq.
The AI server stock slipped 2.8% to $26.87 as of the latest quote before the dateline. It had earlier hit $29.20, or 5.6% above Wednesday’s close, but then gave up those gains and dropped below the previous close. Shares finished the stretch 8.0% off the day’s high.
With 692.189 million diluted shares from the last quarter, the swing from the day’s high to the latest price is around $1.61 billion. That’s over three times Supermicro’s $483 million net income for the March quarter.
| Security | Latest price | Day move vs previous close | Move from intraday high | Volume |
|---|---|---|---|---|
| Super Micro Computer, Inc. NASDAQ:SMCI | $26.87 | fell 2.8% | dropped 8.0% from its high | 33.0 mln |
| NVIDIA Corp. NASDAQ:NVDA | $193.29 | down 2.2% | off 3.4% from peak | 88.2 mln |
| Dell Technologies Inc. NYSE:DELL | $389.79 | lost 8.3% | down 9.1% from session high | 4.9 mln |
| Invesco QQQ Trust Series 1 NASDAQ:QQQ | $711.04 | off 1.9% | down 2.8% from high | 36.9 mln |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $742.88 | slipped 0.4% | down 1.1% from high | 30.7 mln |
Day moves and high-to-latest changes use the most recent quote data.
Supermicro shares matter to investors, since the company is treated in the market like it has steady demand but can’t afford mistakes. As of its most recent close, market value stood at $18.6 billion, which is about 0.47x the middle of its projected 2026 sales, or $38.9 billion to $40.4 billion. That cheap sales multiple doesn’t answer the question about control risk.
Thauberger said in a letter to customers on July 1 that authorities questioned four Supermicro Taiwan staffers Monday about sales to a Taiwanese tech firm. According to Thauberger, two were held for a hearing and two posted bail. He told customers Supermicro has “zero tolerance” for violations and insisted the situation had “absolutely no impact” on service. Supermicro
Taiwan authorities are investigating suspected illegal exports of AI servers with NVIDIA Corp. NASDAQ:NVDA chips to China, where U.S. rules restrict advanced chip shipments, Reuters said. The Keelung District Prosecutors’ Office is running the case. This follows a May operation when officials seized 50 servers and detained three people, according to Reuters.
The overhang isn’t new to this week. In March, Supermicro disclosed that the U.S. Attorney’s Office for the Southern District of New York had unsealed charges against three individuals tied to the company for alleged export-control violations. Supermicro at the time said it wasn’t named as a defendant and was cooperating with the authorities.
| Supermicro data point | Latest company figure | Price read-through |
|---|---|---|
| Fiscal Q3 net sales | $10.2 bln | Sales fell from $12.7 bln in Q2, but they’re still up from $4.6 bln this time last year |
| Fiscal Q3 gross margin | 9.9% | Slim margin means delays could tighten profit more |
| Fiscal Q3 cash flow from operations | -$6.6 bln | Big investments draining cash |
| Cash; debt and convertible notes | $1.3 bln; $8.8 bln | Debt is more of a worry if shares fall |
| Fiscal 2026 sales outlook | $38.9 bln-$40.4 bln | Market cap lags, trading below half the forecast midpoint |
Chief Executive Charles Liang talked about “margin recovery” in the May quarter, but the same report showed $6.6 billion in cash used by operations. That’s where the stock is stuck: the market isn’t just buying AI server growth. Investors want to see if orders, cash flow, and export controls can work in the same system. Q4 Capital
Nasdaq was set to close the regular stock session at 4 p.m. Eastern. The exchange shows Friday, July 3, closed for Independence Day observed. That leaves the next normal cash session after the holiday break.
