Super Micro Computer is not to be trusted given its continued history of accounting fraud, and there are far better investments without that risk. The stock just dropped below $30 after smuggling $2.5B worth of Nvidia GPUs to China, which was no surprise. x.com 

Super Micro Computer is a company to avoid on fraud concerns after its co-founder was arrested in an alleged $2.5 billion Nvidia chip smuggling scheme, per Zerohedge. x.com 

Super Micro should benefit as data centers buy the servers that house Nvidia's AI chips. Its quarterly sales outlook rose from $15B to $19B; the stock is 36% below its high and trades at 8x next year's earnings. It is a double from here. x.com  x.com 

Super Micro Computer looks like a fraud, and the earlier alarm raised on it is being borne out. x.com 

Super Micro Computer has been rotten from the beginning, a stock to avoid when so many peers are available. Per @StockMKTNewz, citing CNBC, US prosecutors have charged a Super Micro co-founder, employee and contractor with smuggling Nvidia chips to China, yet the stock is only down about 3%. x.com  x.com 

Super Micro Computer's nearly 40% drop over the past month is a market overreaction, since the allegations targeted a director, not the company, and found no company wrongdoing. Some of the pressure may have been competitor-driven or politically amplified. What matters is engineering strength: it builds roughly all of xAI's servers, is involved early in Terafab, and is often the first partner AI-chip startups such as d-Matrix turn to. It remains a long-term hold. x.com 

Super Micro Computer faces governance risk as Taiwan's chip-smuggling probe reaches it. Per the Kobeissi Letter, the stock fell more than 9% after its Taiwan office was raided. The raid is unsurprising given that its CEO smuggled Nvidia products to China. x.com 

Super Micro is not worth touching no matter how cheap, because its management cannot be trusted. It has a good customer roster, including xAI for its first Memphis data center, but that matters little without trust in the people behind it. Dell, a bet on its founder, remains the preferred server name, unchanged from a year ago. x.com 

Increased AI-platform demand is lifting Super Micro Computer's preliminary revenue above guidance. Supermicro estimates fiscal Q1 2027 revenue of $18.5B-$19.5B versus $14.5B-$15.5B guided, and gross margin of 12%-12.5% versus 10.4%-10.8% guided, primarily due to customer and product mix. No one is bullish enough on the stock; $50+ by year-end is in view. x.com  x.com  x.com 

Super Micro Computer should come off the watchlist because its administrative team has a criminal history. x.com