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$SMCI erased 10.84% after Taiwan intensified its AI chip smuggling probe.
The investigation now includes companies linked to Supermicro and follows earlier allegations involving Nvidia AI chips being routed to China.
Taiwan could soon criminalize illegal AI chip exports, raising the stakes for the entire industry.
With tougher export laws now under discussion, AI supply chains could face even greater scrutiny.
Is this a temporary headline-driven selloff, or the start of a much bigger regulatory risk for AI stocks?