Super Micro Computer (SMCI) Stock Falls as Chinese Military-Linked Universities Found Using Restricted Nvidia Chips

TLDR

• Four Chinese universities, two with PLA links, bought Super Micro servers loaded with restricted Nvidia A100 chips over the past year.
• Three people linked to Super Micro, including its co-founder, were charged last week with helping smuggle $2.5 billion in U.S. AI tech to China.
• Super Micro says it was the victim of the scheme and was not named in the indictment.
• Two U.S. senators are now calling on Commerce Secretary Howard Lutnick to pause all export licenses for advanced Nvidia AI chips to China and Southeast Asian intermediaries.
• Beihang University and Harbin Institute of Technology — both on the U.S. export blacklist — are among the confirmed buyers.

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Super Micro Computer (SMCI) and Nvidia (NVDA) stocks dropped sharply on Thursday after Reuters reported that Chinese universities with ties to the People’s Liberation Army purchased Super Micro servers equipped with restricted Nvidia AI chips.

Super Micro Computer, Inc., SMCI

Procurement data reviewed by Reuters shows four Chinese universities bought the servers over the past year. Two of those universities have direct links to the PLA.

The U.S. has restricted the sale of certain Nvidia chips, including the A100, to China since 2022. The concern is that advanced AI chips could boost China’s military capabilities.

The news comes just days after three people connected to Super Micro — including the company’s co-founder — were charged with allegedly helping smuggle at least $2.5 billion worth of U.S. AI technology to China.

Super Micro was not named in the indictment. The company has said it was the victim of an elaborate scheme carried out by those individuals.

Reuters also found that two additional universities — one with military ties — attempted to make similar purchases, though it was unclear whether those deals went through.

Super Micro declined to comment on the procurement documents. Nvidia said it continues to work closely with customers and the U.S. government on compliance.

PLA-Linked Schools Named in Procurement Records

Among the confirmed buyers is Beihang University in Beijing, one of China’s “Seven Sons of National Defense.” A March 16 notice showed it procured a machine-learning workstation built on a Super Micro system with four Nvidia A100 chips.

Harbin Institute of Technology (HIT), also a “Seven Sons” institution and known for research in missiles, satellites, and robotics, procured a Super Micro system with eight Nvidia A100s, according to a July notice.

Both universities are on the U.S. export blacklist, which makes it difficult for U.S. companies to legally supply them. Neither responded to requests for comment.

Senators Push for Export Pause

Two U.S. senators responded to the situation on Monday by writing to Commerce Secretary Howard Lutnick. They urged him to consider pausing all export licenses allowing advanced Nvidia chips and server systems to reach China or intermediaries in Southeast Asia.

The Trump administration had previously approved the sale of Nvidia’s H200 chips — more powerful than currently restricted products — to China, under a set of conditions. Sources said this month that Nvidia has also won Beijing’s approval to sell the H200, though no confirmed sales have taken place yet.

Neither China’s commerce ministry nor the U.S. Commerce Department responded to Reuters’ request for comment.

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