Today’s Change
Current Price
Super Micro Computer (SMCI +8.21%), a modular AI server and storage solutions provider, closed Thursday at $41.30, up 8.14% for the session. The stock moved higher as investors responded to a report that the company collaborated with Taiwanese authorities to block an illegal attempt to divert its servers to China.
Volume reached 67.4 million shares, about 74% above its three-month average of 38.8 million shares. Super Micro Computer IPO’d in 2007 and has grown 4,615% since going public.
How the markets moved today
The S&P 500 (^GSPC +0.58%) rose 0.57% to 7,563, while the Nasdaq Composite (^IXIC +0.91%) gained 0.91% to finish at 26,917. Among computer hardware peers, Dell Technologies (DELL +3.84%) closed at $317.05 (+3.84%), but jumped by over 20% after hours on its earnings report.
What this means for investors
News that Super Micro has tightened its export compliance efforts is welcome and a good way to reshape its AI-server growth narrative. A company co-founder was recently arrested for allegedly smuggling servers with Nvidia (NVDA +0.80%) chips into China.
That the company helped thwart another smuggling attempt is a positive step. Super Micro said three arrests were made, and 50 Nvidia-equipped servers seized. The servers were sold to an authorized reseller, but then attempted to be diverted around export restrictions.
While the company may be getting more proactive, Nvidia CEO Jensen Huang told reporters, “Ultimately, Super Micro has to run their own company. I hope that they will enhance and improve their regulation compliance and avoid that from happening in the future.”
That doesn’t sound like a ringing endorsement. After competitor Dell reported stellar earnings after the bell, investors may be better off owning that AI server maker.
Howard Smith has positions in Dell Technologies and Nvidia and has the following options: short July 2026 $250 calls on Dell Technologies. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
