Nvidia’s (NVDA) stock has taken a hit, falling 8.7% to its lowest closing price since September. The decline comes after reports surfaced that the company’s AI chips are reaching China despite export controls.
According to The Wall Street Journal, Nvidia’s Blackwell chips are being sold in China through third-party resellers registered in nearby regions, violating US export regulations. This has led to an investigation by Singapore into Dell and Super Micro Computer, which use Nvidia’s chip technology, for potential violations of US export restrictions.
Dell stock fell 7% and Super Micro shares dropped 13% after the announcement. Nvidia’s decline puts its stock down over 12% in the past five days. Shares traded at levels just above their 2025 low of $117 following a cheap Chinese AI model from DeepSeek fueled a rout in US Big Tech stocks.
Nvidia uses Arm’s architecture for its Grace CPUs, used alongside Blackwell GPUs in AI server system designs manufactured by Dell and Super Micro. Analyst Gil Luria warned that investors are concerned Nvidia may face further restrictions on sales to China.
In its latest earnings report, Nvidia showed $11 billion in revenue from its Blackwell AI server system designs. The company said it has achieved full-scale production despite earlier reports of glitches and overheating issues. However, the Biden administration’s export controls on Nvidia chips remain in place.
President Trump is reportedly considering a further crackdown on Nvidia chip exports to China, which could expand restrictions to cover Nvidia’s H20 chips. This would add pressure on Nvidia stock Monday.
Source: https://finance.yahoo.com/news/nvidia-stock-tumbles-over-8-to-close-at-lowest-level-since-september-164735459.html