Things are going from bad to worse for Supermicro (SMCI). In June, SMCI stock fell badly after Supermicro announced that it was seeking $7 billion in funding to pay for a backlog of $39 billion in orders. More recently, however, the company's offices in Taiwan were raided by local government agents as part of an ongoing investigation related to allegations of smuggling Nvidia (NVDA) GPUs into China.
SMCI stock fell 8% on June 29 and is now down 46% in the last month. Investors are understandably cautious. Supermicro doesn't have the best of reputations, considering it was temporarily delisted from the Nasdaq in 2018 for not filing timely financial reports, then fined in 2020 by U.S. regulators for accounting violations.
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