SUPER MICRO COMPUTER INC
SMCI
Information Technology
1
exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Super Micro Computer faces overlapping financial misconduct scandals. In August 2024, short-seller Hindenburg Research alleged accounting irregularities, undisclosed related-party transactions, and sanctions evasion. Later that month, SMCI delayed its 10-K filing to assess internal controls. In October 2024, auditor Ernst & Young resigned, stating it could no longer rely on management representations. The SEC and DOJ issued subpoenas. In March 2026, co-founder Yih-Shyan "Wally" Liaw was arrested after a DOJ indictment alleged a $2.5 billion scheme to smuggle Nvidia AI servers to China via falsified documents, causing a 33% single-day stock decline. A securities class-action lawsuit has been filed covering April 2024 through March 2026. SMCI stated it is not a defendant but placed Liaw on administrative leave.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.