<div id="readability-page-1"><p>After a more than 9% gain on Wednesday, Super Micro Computer's (SMCI) shares struggled to make headway in Thursday's pre-market sessions. This followed an update from Taiwanese prosecutors on the $2.5 billion chip-smuggling scandal rocking the AI server maker.</p><h3>Claim 55% Off TipRanks</h3>High conviction NVDA bears now have this Tradr ETF <p>In mid-March, U.S. authorities charged two employees and a contractor with conspiring to evade U.S. export controls by shipping SMCI AI servers containing restricted Nvidia (NVDA) AI chips to China, routing them through Taiwan and Southeast Asia.</p> <p>The indicted individuals were Yih-Shyan &#34;Wally&#34; Liaw, an SMCI co-founder, senior VP of business development, and board member; Ruei-Tsan &#34;Steven&#34; Chang, the company's sales manager in Taiwan; and Ting-Wei &#34;Willy&#34; Sun, a contractor for SMCI. </p> <h2><strong>Taiwan Detains Suspects in Smuggling Case</strong></h2> <p>In an update published on Thursday, Taiwanese prosecutors from the Keelung district said they had detained three nationals suspected of being involved in the case. However, they did not give the full names of the suspects.</p> <p>The prosecutors' office said it believes that the suspects worked together to purchase the SMCI servers in Taiwan and sell them in China, Hong Kong, and Macau using falsified documents. It alleged that the suspects made the move despite their knowledge of U.S. restrictions on the export of the banned Nvidia chips to the region.</p> <p>The prosecutor said its team combed through 12 locations, including the residences and associated companies of the suspects, and seized related evidence. </p> <p>The update marks a challenge for Super Micro Computer, whose growth is being fueled by strong demand for its high-performance servers and storage solutions. The company has previously said the alleged conduct of the employees contravenes its policies and compliance controls.</p> <p>It placed the two employees on administrative leave and terminated its relationship with the contractor.</p> <h2><strong>Is Super Micro a Good Stock to Buy?</strong></h2> <p>On Wall Street, Super Micro Computer's shares remain a Hold based on analysts' consensus rating. This is based on three Buys, eight Holds, and two Sells assigned by 13 analysts over the past three months.</p> <p>Moreover, the average SMCI price target of $34.82 only implies about 4% upside in the months ahead.</p></div>

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<p>Super Micro Computer's (SMCI) stock struggled after a 9% gain, amid a $2.5 billion chip-smuggling scandal involving Nvidia (NVDA) chips. Taiwanese prosecutors detained three suspects linked to the case, which involves evading U.S. export controls. SMCI has placed implicated employees on leave and terminated a contractor. Analysts rate SMCI as a Hold, with a price target suggesting only a 4% upside.</p>

- Super Micro Computer's shares faced difficulty in pre-market trading after a 9% gain, following updates on a $2.5 billion chip-smuggling scandal involving the company.  
- U.S. authorities charged three individuals connected to SMCI for conspiring to evade export controls on Nvidia chips, and Taiwanese prosecutors detained three nationals related to the case.  
- Despite challenges, Super Micro Computer's growth is supported by strong demand for its servers, yet analysts suggest a cautious outlook with an average price target implying only 4% upside.

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SMCI Stock Loses Shine as Taiwan Probes $2.5B Nvidia (NVDA) Chip-Smuggling Scandal