Super Micro

Super Micro Computer faces leadership turmoil after co-founder Yih-Shyan Liaw’s indictment for allegedly smuggling AI chips to China. Liaw resigned, while another executive is on leave. The company’s stock dropped 33% amid allegations of circumventing export controls. Super Micro appointed a new acting chief compliance officer and is enhancing its framework. The case highlights regulatory challenges in the AI hardware sector.

Super Micro Computer (SMCI) shares fell 6% after preliminary Q1 2026 results missed expectations, forecasting $5 billion revenue instead of $6-7 billion. The company attributes this to “design win upgrades” shifting revenue to Q2. Despite this, CEO Charles Liang anticipates strong customer demand and reiterated revenue of at least $33B for FY 2026, driven by AI market share gains. Recent design wins exceed $12 billion, set for Q2 delivery. A detailed update will be provided during the November 4 earnings call.