Super Micro (SMCI) co-founder Yih-Shyan Liaw pleaded not guilty to charges tied to an alleged $2.5 billion scheme involving Nvidia (NVDA)-powered servers. The case, centered on alleged violations of U.S. export controls, is now set to move forward, with a trial scheduled for November 2.
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New trading tool for NVDA bearsDetails of the Alleged Scheme
Federal prosecutors allege that Liaw and two others arranged shipments of U.S.-assembled servers containing Nvidia chips to Chinese customers through a Southeast Asian intermediary. The shipments were allegedly structured to bypass export restrictions on advanced AI hardware.
Also charged are Ruei-Tsang Chang and Ting-Wei Sun. Sun also pleaded not guilty, while Chang is not currently in custody.
Legal Process Begins as November Trial Date Is Set
The case will now move into the pre-trial phase ahead of the November 2 court date set by U.S. District Judge Edgardo Ramos. This stage typically includes evidence review and legal motions from both sides.
Notably, Liaw has been released on a $5 million bond and has stepped down from Super Micro’s board. The outcome of the trial will be key in determining the extent of any legal or financial impact.
Why Investors Are Watching
The case adds a clear legal overhang for Super Micro, with the November trial likely to keep sentiment cautious in the near term. The stock had already dropped 27% when the charges were first revealed in March, and the case now remains an ongoing risk as it moves through the courts.
The issue also goes beyond one company. The allegations focus on the shipment of Nvidia-powered AI servers to China, an area under strict U.S. export controls. This puts a spotlight on how closely regulators are tracking the movement of advanced chips and related hardware.
For companies involved in AI infrastructure, it shows that compliance risks are rising alongside demand, especially when dealing with global customers and supply chains.
Is SMCI Stock a Buy Right Now?
On TipRanks, SMCI stock has a Hold consensus rating based on three Buys, eight Holds, and three Sell ratings. The average Super Micro Computer price target of $31.70 implies 40.83% upside potential from current levels. Year-to-date, SMCI shares have fallen 23.1%.
