Super Micro Denies Megaspeed Link as Nvidia Smuggling Probe Widens

Super Micro Computer (NASDAQ:SMCI) has issued a flat denial of any ties to Megaspeed, the export-control scandal now pulling in NVIDIA (NASDAQ:NVDA). "Megaspeed is not, and has never been, a Supermicro customer," a company spokesperson told Fortune on November 13.

The denial matters because Super Micro builds the servers that carry NVIDIA's GPUs. According to Fortune, the U.S. Attorney's Office in Manhattan is examining whether entities linked to Alice Huang, a former top Megaspeed executive, helped smuggle Super Micro hardware containing NVIDIA GPUs into China. Neither Super Micro nor NVIDIA has been charged.

Who is cooperating — and who says otherwise?

Super Micro paints itself as a willing partner in the investigation. The company said it "has been responsive to inquiries and has fully cooperated with U.S. and Taiwanese officials, while also voluntarily providing information and engaging with all requests from Singapore authorities to date."

Singapore tells a different story. The country's Ministry of Home Affairs said it received only "limited cooperation" from the company, and that it first raised the matter with U.S. authorities on July 7, 2025.

The market has already rendered a partial verdict. SMCI shares closed at $26.865, down 6.07% over the past week and 23.44% over the past month. NVIDIA fell 12.75% in a week to $162.85.

An earlier case still hangs over the stock

This is not Super Micro's first brush with GPU smuggling allegations. In March, co-founder Yih-Shyan "Wally" Liaw and two others were charged with allegedly routing about $2.5 billion in servers equipped with NVIDIA H200 and B200 GPUs into China through a Southeast Asian front company.

Liaw pleaded not guilty. His trial is set for March 2027. Super Micro says it was a victim of the scheme and that an internal investigation found no evidence current senior management knew about it. That case is separate from the Manhattan inquiry now examining the Megaspeed thread.

There's also an internal reckoning underway. Super Micro's own earnings release warned that its board is conducting an independent review of certain export-control transactions that "could affect financial results."

What do the numbers say about the business?

The commercial picture beneath the legal noise remains substantial. Reporting fiscal Q4 2026 results, CEO Charles Liang said: "We added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027."

The reported figures backed part of that story:

• GAAP gross margin expanded to 17.5%, up from 9.5% a year earlier.
• Non-GAAP EPS of $1.70 beat the $0.9575 consensus.
• Revenue of $11.12 billion rose 93.16% year over year, but missed the $11.56 billion estimate.

Liang credited "a richer enterprise customer mix" and "continued investment in technology leadership, manufacturing scale, and global compliance." That compliance line now carries the most weight. A broader customer base reduces concentration risk, but Super Micro's growth still depends on steady access to NVIDIA GPUs — and on customers trusting that its export controls hold.

What should investors track next?

The stock trades at roughly 5 times forward earnings, a multiple that already prices in heavy doubt about the outcome.

The markers ahead are concrete: any findings from the Manhattan inquiry, new regulatory filings, updates from the board's export-control review, and any change to financial guidance. Super Micro's denial addresses Megaspeed only as a direct customer relationship. Whether its hardware reached China through other channels is the question investigators still have to answer — and the answer will shape both the stock and NVIDIA's distribution chain for months to come.