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Wall Street Breakfast Podcast: SMCI Hit By Export Scandal

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Wall Street Breakfast Podcast: SMCI Hit By Export Scandal

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Mohamad Faizal Bin Ramli/iStock via Getty Images

Listen below or on the go via Apple Podcasts and Spotify

Nasdaq, S&P, Dow futures rise as Netanyahu eases concerns about the Iran conflict. (00:15) Super Micro (SMCI) falls as co-founder, employee charged in Nvidia chip smuggling case. (00:48)Unilever (UL) in talks to sell its food business to McCormick (MKC). (03:00)

This is an abridged transcript.

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Stock index futures are firmly in the green.

S&P 500 futures (SPX) rose 0.90%, Nasdaq 100 futures (US100:IND) gained 1.02%, and Dow Jones Industrial Average futures (INDU) advanced 0.97%.

Bitcoin is up 1% at $70,000. Gold is up 0.5% at $4,677.

Market sentiment improved after Israeli Prime Minister Netanyahu said the country is helping to reopen the Strait of Hormuz.

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Oil prices slipped on the news that Netanyahu said Iran no longer has the capacity to enrich uranium or make ballistic missiles.

Crude oil is down 0.2% at $95. Brent crude is at $109.

European indexes also rebound after an ease in oil prices.

The FTSE 100 is up 0.2% and the DAX is up 0.6%.

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In Asia, the markets in Japan (NKY:IND) closed for a holiday.

Super Micro Computer (SMCI) is down 22% in premarket action.

Three individuals linked to the AI server maker, including a co-founder, were charged with violating export laws by assisting in the smuggling of at least $2.5 billion worth of U.S. AI technology to China.

The Justice Department did not name Super ‌Micro in the complaint, referring only to a “U.S. manufacturer.”

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The company said it was informed by federal prosecutors of the indictment on Thursday. It noted that it was not named as a defendant in the case and said it had cooperated with investigators.

In an indictment unsealed on Thursday, the U.S. government alleged that Yih-Shyan “Wally” Liaw, Ruei-Tsan “Steven” Chang and Ting-Wei “Willy” Sun worked together to violate the Export Control Reform Act. Liaw co-founded Super ​Micro in 1993, and joined its board of directors in 2023. Chang was a sales manager in the Taiwan office of Super Micro, while Sun was ⁠a contractor.

U.S. officials allege the trio went to great lengths to hide their actions from both U.S.-based server manufacturers and export control authorities, even using hair dryers to remove labels and serial numbers ​from the real machines and placing them on dummy machines left behind after the real machines had been shipped to China.

The efforts have yielded around $2.5 billion in sales for the server maker since 2024, with $510 million sold between late April 2025 and mid-May 2025 going to the Southeast Asian company and on to China, the indictment said. The plaintiff said the server maker had no U.S. Commerce Department license to export servers featuring Nvidia (NVDA) GPUs to China.

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Super Micro Computer (SMCI) said it placed its co-founder and the sales manager on leave and terminated its ties with the contractor, after being made aware of the charges on Thursday.

The attorney’s office said the co-founder and contractor were both arrested on Thursday, while the sales manager is a fugitive.

Unilever (UL) announced that it received an inbound offer for its food business and is in discussions with McCormick (MKC).

The Wall Street Journal reported, citing people familiar with the matter, that an all-stock deal may be announced within weeks if talks don’t fall apart. The exact structure remains unknown.

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Unilever’s (UL) food business, which houses brands such as Knorr and Hellmann’s, could be worth tens of billions of dollars. McCormick’s (MKC) products include Frank’s RedHot sauce and French’s yellow mustard.

Separating its food business would enable Unilever (UL) to focus on its beauty, personal care and home divisions. The company spun off its ice cream business Magnum last year.

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Bezos raising $100B to buy industrial firms and upgrade them with AI: report

The biggest movers for the day premarket: FedEx (FDX) +11% – Stock gained in premarket trading after the company topped expectations with its fiscal third-quarter earnings report.

Here’s a link to the Investment News Quiz for the week.

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Quanex Building Products: Expect Outperformance To Keep Building

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Quanex Building Products: Expect Outperformance To Keep Building

Quanex Building Products: Expect Outperformance To Keep Building

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We need a plan to revive and renew struggling universities in Wales

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For too long Welsh higher education has behaved as though the market around it has not fundamentally changed,

The Owain Glyndwr statue in Corwen

The Owain Glyndwr statue in Corwen .(Image: Ian Cooper )

I was the first in my family to go to university, but I was not the first to understand what education could mean.

My great-grandfather, a quarryman in Gwynedd, was among those who gave what little they could to help establish the University College of North Wales in Bangor in the nineteenth century. Those contributions mattered because they came from people who had very little but believed higher education was worth building for future generations.

That is why the crisis now facing Welsh universities is important, as this is not simply a story about deficits, redundancies and falling student numbers. It is about whether Wales is prepared to let one of its most important national assets drift into decline.

For too long, Welsh higher education has behaved as though the market around it has not fundamentally changed, but students are now more mobile, more selective and more exposed to a competitive UK-wide system than ever before. Welsh universities are not mainly competing with each other, they are competing with powerful English institutions, major city brands and a student market that is making harder judgments about value, employability and experience.

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READ MORE: Anglesey Freeport receives £25m of seed funding for projectsREAD MORE: Swansea Civic Centre regeneration plans secures £20m funding boost

Yet Wales has never developed a convincing answer to that challenge, and “Study in Wales” should have become a serious national proposition, built around quality, affordability, community and opportunity. Instead, it has too often felt like a slogan rather than a strategy, and too many institutions have looked and sounded alike, chasing similar students with similar offers.

The deeper problem is not simply that some Welsh students leave Wales, it is that the system has become increasingly dependent on students from elsewhere while the number of Welsh-domiciled students staying in Wales has fallen. That leaves universities more exposed to changes in markets they cannot control.

That vulnerability is clearest in the finances and across the sector – deficits have widened, staff cuts have deepened, and fragility has become impossible to ignore. This is not the problem of a single badly managed institution, and while Welsh universities operate in a difficult UK environment, many also lack the scale and resilience of larger competitors elsewhere.

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International students are not the problem as they bring enormous academic, cultural and economic value. The problem is overdependence, and when international recruitment becomes the key support holding up an institution, rather than one part of a balanced model, the risks become obvious.

But this is not just about money, it is also about people. The loss of hundreds of posts across the Welsh university sector is not merely a spreadsheet adjustment. It is the loss of expertise, loyalty and institutional memory. More troubling still is how many staff seem to have been treated during restructuring, and too often, one hears the same themes: poor communication, shallow consultation and a lack of dignity. Universities are meant to embody learning, public service and opportunity, and if they begin treating their own people as disposable, they corrode the values they claim to uphold.

That brings us to governance as good governance is not about committees and paperwork. It is about asking difficult questions early enough to matter. Is student demand really there? Is the subject mix sustainable? Is the capital programme affordable? Is the institution genuinely clear about its mission? Too often in Wales, those questions do not appear to have been asked hard enough.

But the Welsh Government must also confront its own role as universities have too often been treated in Cardiff Bay as a financial pressure to be contained rather than as part of Wales’s productive infrastructure. In policy terms, higher education has been repeatedly downplayed, expected to absorb financial pressures while ministers avoid confronting the scale of the challenge.

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That is a serious mistake because universities matter well beyond their campuses. They train nurses, teachers, engineers, entrepreneurs, and public servants on whom Wales relies. They support local jobs, sustain city and town centre economies, attract investment, and help keep talented young people in the country. They are not just education providers but are anchor institutions in the true sense, and if universities weaken, the damage impacts local economies, public services, and national confidence.

The same is true of research, and for too long, Wales has failed to secure anything like its fair share of UK research funding. That matters because research is not an optional extra, it is central to long-term economic growth, innovation and national capacity. If Wales continues to receive far too small a share of UK research and development funding while other parts of the country pull further ahead, we should not be surprised when the gap widens in productivity, commercialisation and high-value employment.

This is not just a university problem but a national economic problem, and every extra pound of research funding helps build laboratories, support skilled jobs, develop new technologies, attract private investment and create spin-out businesses. When Wales loses out, the whole country loses out, and a nation that does not fight for its fair share of research funding is quietly accepting a smaller future.

The good news is that Wales still has outstanding staff, talented students and institutions of real importance, but strengths alone are not enough. Without honesty, reform and a much clearer sense of national purpose, the sector will simply continue to lurch from one crisis to the next.

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And in truth, this is not a new aspiration.

More than six centuries ago, when Owain Glyndwr outlined his vision for an independent Wales in the Pennal Letter of 1406, establishing two universities, one in the north and one in the south, was among his chief priorities. He understood then what we must remember now namely that higher education is not secondary to Wales but is central to its future.

The task, then, is not merely to save universities, but to renew and revitalise the higher education system that remains vital to our country’s future. That is the challenge, and that is the opportunity.

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Ex-CEO Bronwyn Barnes accuses Ivanhoe Atlantic of illegal laptop seize

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Ex-CEO Bronwyn Barnes accuses Ivanhoe Atlantic of illegal laptop seize

Perth-based executive Bronwyn Barnes has accused Ivanhoe Atlantic of seizing a laptop containing her records, as proceedings against her former employer continue in court.

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Allspring Absolute Return Fund Q4 2025 Commentary (WARAX)

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Allspring Absolute Return Fund Q4 2025 Commentary (WARAX)

Red ladder and stack coin on wooden table with white wall background copy space.

Pla2na/iStock via Getty Images

GENERAL FUND INFORMATION

Ticker: WABIX

Portfolio managers:

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Petros Bocray, CFA®, FRM;

Matthias Scheiber, CFA®, Ph.D.;

Rushabh Amin;

and David Kowalske, Jr.

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Subadvisor: Allspring Global Investments, LLC

Category: Tactical allocation

FUND STRATEGY

  • Invests in affiliated mutual
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H.C. Wainwright reiterates Intellicheck stock rating on revenue beat

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H.C. Wainwright reiterates Intellicheck stock rating on revenue beat

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Stephens raises FedEx stock price target to $435 on strong yields

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Stephens raises FedEx stock price target to $435 on strong yields

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The Retirement System Is Breaking – 8 Risks Most Investors Still Ignore

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The Retirement System Is Breaking - 8 Risks Most Investors Still Ignore

This article was written by

Leo Nelissen is a long-term investor and macro-focused strategist with a passion for dividend growth, high-quality compounders, and structural investment themes. He combines big-picture macro analysis with bottom-up stock research to identify durable businesses with strong cash-flow potential. Leo also writes for Main Street Alpha, where he publishes deeper-dive research and actionable investment ideas for long-term investors.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Columbus McKinnon Corporation (CMCO) Presents at Sidoti March Small-Cap Virtual Conference – Slideshow

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Columbus McKinnon Corporation (CMCO) Presents at Sidoti March Small-Cap Virtual Conference – Slideshow

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Eternal shares jump 3% from lows as Zomato hikes platform fee by Rs 2.4 per order

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Eternal shares jump 3% from lows as Zomato hikes platform fee by Rs 2.4 per order
Eternal shares on Friday rose 3% from the day’s low of Rs 230.10 on the NSE to scale the day’s high of Rs 236.70 after its food delivery platform Zomato increased the platform fee by Rs 2.40 per order. The stock witnessed strong investor response with over 5.5 crore shares getting traded on the exchange. The traded value of the shares stood at Rs 1,293 crore.

The stock finally ended at Rs 232.41, up by Rs 3.67 or 1.60% over the last closing price of Rs 228.74.

On a pre-GST basis, platform fee on Zomato is now Rs 14.90 per order from Rs 12.50 earlier, according to a news report by ET Tech. The last such hike was undertaken in September 2025, the report said. Zomato’s food delivery rival Swiggy is currently charging a fee of Rs 14.99 per order, including taxes. Typically, the two players follow each other in changing these levies.

The move comes at a time when urban mobility startup Rapido has launched its food delivery offering Ownly in Bengaluru, claiming that it will not charge any additional fees to customers or restaurants apart from a delivery charge.

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Eternal shares have seen significant correction, declining 30% in the past six months. It has underperformed Nifty and the BSE Sensex, which have declined 9% and 10%, respectively in the same period.


The stock is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 265 and Rs 291, respectively, according to Trendlyne data.
Also read | Nifty Bank logs 3rd-worst March fall since the global financial crisis. HDFC Bank, SBI among top culpritsEternal, which also operates quick commerce arm Blinkit, reported a 73% year-on-year (YoY) rise in consolidated net profit to Rs 102 crore. Revenue from operations surged 201% YoY to Rs 16,315 crore.

Revenue growth was mainly driven by an accounting shift to inventory ownership in quick commerce, where revenue now includes the full value of goods sold rather than just marketplace commission. According to Eternal, the like-for-like revenue growth during the quarter was 64% YoY.

Consolidated EBITDA increased 28% YoY to Rs 364 crore, while rising 63% QoQ.

For the food delivery business, adjusted revenue rose 26% YoY to Rs 2,413 crore. Net order value (NOV) increased 17% YoY, accelerating from 13.8% growth in the previous quarter. This marked the second consecutive quarter of NOV growth acceleration, following a trough of 13.1% in Q1FY26. Gross order value (GOV) growth for the third quarter stood at 21% YoY.

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Also read | 83% of BSE 500 stocks plunge up to 35% amid Mideast war. Do you own any?

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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Mark My Words March 20 2026

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Mark My Words March 20 2026

Sam Jones and Tom Zaunmayr discuss fuel furor, mining moves, property purchases and other big stories of the week.

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