Why Is Super Micro Computer Stock Falling on Monday?

Super Micro Computer Inc. (NASDAQ:SMCI) stock is under pressure Monday after a company contractor pleaded guilty to helping illegally export servers with advanced Nvidia Corp. (NASDAQ:NVDA) AI chips to China in an alleged $2.5 billion scheme. Ting-Wei "Willy" Sun entered the plea Thursday in U.S. District Court in Manhattan, Reuters reported, citing a court filing. The Nasdaq is down 0.75% while the S&P 500 has shed 0.09% and technology is also lagging with a 1.2% decline. What Sun Admitted in Court Sun pleaded guilty to four charges: conspiring to violate U.S. export controls, smuggling, defrauding the U.S. government and obstructing justice. In March, prosecutors charged Sun and two others tied to Super Micro with conspiring to divert about $2.5 billion in U.S. AI servers to China. The indictment says the scheme began around 2024 and involved shipping servers without required licenses. It describes Sun as a broker and fixer who helped set up fake servers in December 2025 and lied to a U.S. Department of Commerce official during an inspection. According to the indictment, the servers had already been diverted to China. Co-founder Yih-Shyan "Wally" Liaw and Taiwan sales manager Ruei-Tsang "Steven" Chang were also indicted. Read Also: Ray Dalio Says the AI Bubble Is Close to Bursting. A Strategist Says Zombie Companies Are the Real Risk U.S. Export Rules on AI Chips The U.S. restricts sales of advanced AI chips to China on national security grounds. According to the indictment, the restrictions cover Nvidia’s B200, H100 and H200 graphics processing units, as well as servers equipped with these chips. California-based Super Micro said it terminated Sun and cut ties with the other defendants earlier this year. Technical Analysis From a trend perspective, SMCI is still holding a constructive longer-term setup: it’s trading about 5% above its 50-day SMA ($38.24) and roughly 24% above its 200-day SMA ($32.37), with a golden cross in August keeping the bigger-picture bias pointed higher. The near-term issue is momentum cooling, with the stock now about 2.6% below its 20-day SMA ($41.34), which can act like "gravity" during pullbacks. RSI is the cleanest momentum read right now, sitting at 49.60, which signals neutral conditions rather than an oversold bounce setup. Key Resistance: $42 — a nearby round-number area that also sits above the 20-day moving-average zone, where rebounds can stall Key Support: $35.50 — a prior buyer-defense area that lines up closely with the mid-$30s trend support near the 100-day/200-day EMA region SMCI Stock Price Activity: Super Micro Computer shares are trading lower by 5.53% at $39.54 at the time of publication on Monday, according to Benzinga Pro data. Read Also: Kimbal Musk Says Tesla Cybercab Is ‘Amazing to Use’ as Driverless Fleet Explodes in Austin and Raises Stakes for Elon Musk’s Robotaxi Bet Image via Shutterstock