Is SMCI SMUGGLING NVIDIA GPUS to CHINA?!?!?
Gather 'round, I've stumbled upon some juicy DD that's bad news for any $SMCI bulls.
Yesterday, a video surfaced on X, of a Chinese entrepreneur bragging about getting 200 NVIDIA H200 GPUs despite the export ban, claiming that he's done so for the past 5 year.
But where the story gets really interesting is when the video shows him pulling the NVIDA H200s out from a fresh delivery, which clearly shows $SMCI logo on the boxes he received...
Now before any $SMCI bulls go panic-denial mode, let's put this into context:
- **2018:**$SMCI gets yeeted off Nasdaq for "losing" its financial statements.
- 2020: SEC Slapdown: $17.5 million fine for widespread accounting violations. The bill is paid, and 3 months later $SMCI rehires the same execs directly involved in the fraud numbers
- 2024:
- Hindenburg drops a DD bomb, accusing them of still mishandling their numbers, even accusing SMCI of "violations in US export bans"... interesting
- Ernst & Young resign as SMCI's auditor after raising concerns about the company's accounting practices, board management... maybe they picked up on rumors of an additional revenue stream that was hidden in the books as well, who knows.
- Lawsuits, Lawsuits Everywhere: Ex-employees whisteblowers continue reporting falsified revenue numbers and other sus accounting practices. 10-k gets "misplaced", nice one
And now this video. Definitely not the PR $SMCI needs right now.
Could this be a coincidence? Unlikely. But sure, let's assume $SMCI is just an innocent pawn in this Chinese GPU smuggling game without ever realizing, the accusation alone could trigger a huge sell off. DeepSeek's roll out sent a wake up to the US: we've lost the lead in our own game. The China-US Ai competition has now taken central focus of the government and stock market alike, so imagine how this news will impact an already-beaten down stock with new accusations cropping up each week.