NVIDIA and supermicrocomputer inventory plummeted, as new investigation into China, concerns over stricter scrutiny
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Shares of NVIDIA (NVDA), Supermicrocomputers (SMCI) and Dell (Dell) fell on Monday after Singapore said it was investigating whether servers were shipped to Malaysia, which contained chips from China banned, eventually in the mainland.
City police arrested several people for suspected violations of U.S. sanctions and their role in purchasing and transporting NVIDIA chips. It previously said the United States has been investigating whether Chinese artificial intelligence startup DeepSeek has circumvented containment in this way.
Law Minister K Shanmugam told reporters on Monday that Singapore is seeking further information from Malaysia and the United States to determine the final destination of Dell and supermicrocomputer servers. He said the buyer misled the supplier about the ultimate destination of the equipment.
The survey has the potential to increase scrutiny of U.S. companies on equipment exports, which could drag sales growth. The same is true of investor caution before booking higher tariffs from Chinese, Mexican and Canadian goods.
NVIDIA shares fell 8.7%. on Monday. Super Micro shares fell 13%, while Dell fell 7%.
Intel (INTC) shares closed 4.2%, giving up earnings earlier in the day as its faltering chip manufacturing business could be boosted from competitors.
According to Reuters, NVIDIA and BRODCOM (AVGO) are using Intel to test their state-of-the-art 18A chip processes, such as AI’s chips. Broadcom will see earnings fall by more than 6% on Thursday.
The top minting Taiwan Semiconductor Manufacturing Corporation (TSM) (TSMC) fell 4.2%.
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