Super Micro Computer Inc (NASDAQ:SMCI) stock is trading lower on Tuesday, driven by a global semiconductor sell-off and escalating regulatory concerns.The Nasdaq is down 2.16% while the S&P 500 has shed 0.72%, and Technology is the weakest sector on the day at a 3.1% loss.Global Semiconductor Sell-Off Spurred By SamsungRising Short Interest On SMCIMarket data shows short interest in Super Micro Computer increased during the latest reporting period, rising from 74.48 million to 96.23 million shares.This puts 19.42% of the company’s publicly available float into short positions. Based on an average daily volume of 80.28 million shares, short sellers require 1.2 days to cover their positions.Ongoing Taiwanese Regulatory InvestigationThe decline follows a July 1 report from Bloomberg stating that Taiwanese prosecutors detained two Super Micro employees.The Taiwan investigation follows a May enforcement action where authorities seized approximately 50 Super Micro servers.Investors continue to monitor potential risks to the company’s artificial intelligence server supply chain and export-control compliance.Critical Technical Levels for SMCI to WatchSMCI is trading well below its major trend gauges, which keeps the longer-term technical posture bearish: it’s 17.1% below the 20-day SMA, 22.6% below the 50-day SMA, and 25.7% below the 200-day SMA. The 20-day SMA sitting below the 50-day SMA reinforces that recent bounces haven’t been strong enough to flip the short-term trend.The bigger-picture warning is the death cross (50-day SMA below the 200-day SMA) that set in during December, a setup that often coincides with choppy-to-lower price action until the stock can reclaim longer moving averages.