Super Micro Gets Swept Up in Spreading Nvidia Scandal. Says Megaspeed Was “Never a Customer”
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Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) is now answering questions tied to the Megaspeed export-control scandal that has also drawn examination to NVIDIA (NASDAQ:NVDA). The company denies any customer relationship. “Megaspeed is not, and has never been, a Supermicro customer,” a Super Micro spokesperson told Fortune on November 13.
The denial matters because Super Micro builds the servers that carry NVIDIA’s GPUs. The U.S. Attorney’s Office in Manhattan is reportedly examining whether entities linked to Alice Huang, a former top Megaspeed executive, helped smuggle Super Micro hardware with NVIDIA GPUs into China, according to Fortune. Super Micro and NVIDIA both remain uncharged.
Super Micro Says It Cooperated. Singapore Says Otherwise
The company said it “has been responsive to inquiries and has fully cooperated with U.S. and Taiwanese officials, while also voluntarily providing information and engaging with all requests from Singapore authorities to date.” Singapore’s Ministry of Home Affairs said it received only “limited cooperation” and first raised the matter with U.S. authorities on July 7, 2025.
Shares closed at $26.865, down 6.07% over the past week and 23.44% over the past month. NVIDIA fell 12.75% in a week to $162.85.
An Earlier Smuggling Case Still Hangs Over the Stock
In March, Super Micro co-founder Yih-Shyan “Wally” Liaw and two others were charged with allegedly routing about $2.5 billion in servers with NVIDIA H200 and B200 GPUs into China through a Southeast Asian front company. Liaw pleaded not guilty, and his trial is set for March 2027. Super Micro says it was a victim and that an internal investigation found no evidence current senior management knew of the scheme. That case is separate from the Manhattan inquiry.
Super Micro’s own earnings release already warned that its board is conducting an independent review of certain export-control transactions that “could affect financial results.”[1]
What CEO Charles Liang Says About the Business
Liang’s most recent public framing came with fiscal Q4 2026 results: “We added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027.”[1]
The numbers backed part of that. GAAP gross margin expanded to 17.5%[1] from 9.5% a year earlier, and non-GAAP EPS of $1.70 exceeded the $0.9575 consensus. Revenue of $11.12 billion[1] rose 93.16% year over year but missed the $11.56 billion estimate.
Liang credited “a richer enterprise customer mix”[1] and “continued investment in technology leadership, manufacturing scale, and global compliance.” That compliance line now carries the most weight. A broad customer base reduces concentration risk, but Super Micro’s growth depends on steady access to NVIDIA GPUs and on customers trusting its export controls.
What Investors Should Track Next
The stock trades at roughly 5 times forward earnings, a multiple that already reflects heavy doubt. Key markers ahead include any findings from the Manhattan inquiry, new regulatory filings, updates from the board’s export-control review and any change to financial guidance. Super Micro’s denial addresses Megaspeed as a direct customer. Whether its hardware reached China through other channels is the question investigators still have to answer.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
