Tue Mar 04 00:10:00 UTC 2025: ## Nvidia Stock Plummets After Reports of AI Chips Reaching China Despite Export Controls

**San Francisco, CA** – Nvidia (NVDA) stock suffered a significant blow on Monday, closing down 8.7% at its lowest point since September. The decline follows reports that its advanced Blackwell AI chips are reaching China through third-party resellers, potentially violating US export controls.

The Wall Street Journal reported that these chips are being routed through entities in neighboring regions, circumventing restrictions. Adding to the pressure, Singapore is investigating Nvidia customers Dell (DELL) and Super Micro Computer (SMCI) for potentially violating US export restrictions by shipping servers containing Nvidia chips from Singapore to Malaysia, a suspected transit point for smuggling chips into China. Dell and Super Micro shares fell sharply, by nearly 7% and 13% respectively, following this news. Arm Holdings, whose architecture Nvidia uses, also experienced a significant drop.

Nvidia’s stock is now down over 12% in the past five days, trading at levels last seen in early February after a cheap Chinese AI model triggered a sell-off in US tech stocks. The company insists it is investigating all reports of potential violations and will take appropriate action, but investors remain concerned about the potential for further restrictions on sales to China.

While Nvidia’s recent earnings report highlighted strong sales of its Blackwell chips, contributing $11 billion to fourth-quarter revenue, the company acknowledged that China sales remain a small fraction of its total data center revenue. However, the possibility of expanded export controls, including a potential crackdown on Nvidia’s H20 chips, continues to weigh heavily on investor sentiment. Reports that Nvidia and Broadcom are testing Intel’s troubled 18A chip manufacturing process further added to the downward pressure.

The situation highlights the complex geopolitical landscape surrounding the semiconductor industry and the challenges faced by companies navigating export controls and the increasingly competitive AI market.

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