nvidia's ai chip exports face scrutiny amid us trade restrictions

2025-03-26 nvidia

Washington, Wednesday, 26 March 2025.
nvidia’s stock faces pressure as u.s. trade restrictions loom, prompting industry lobbying efforts. concerns arise over ai chip diversions to china, triggering investigations in malaysia and singapore. singapore authorities have already charged three men in a $390 million fraud case involving nvidia chips. these restrictions and potential diversions create uncertainty for nvidia and other ai chip manufacturers like amd and broadcom, impacting their market performance and global supply chains.

us trade restrictions impact nvidia’s stock

U.S. trade restrictions are a significant concern for AI chip stocks, including Nvidia [1]. These restrictions are viewed as a major overhang, impacting Nvidia’s stock performance [1]. Melius Research analyst Ben Reitzes noted that the possibility of the Trump administration maintaining or expanding the Biden administration’s ‘AI Diffusion Rules’ adds layers of oversight and limitations on AI chip sales [1]. Reitzes described these rules as ‘a cloud that needs to clear’ for Nvidia’s stock and other companies in the AI chip space [1]. On March 24, 2025, Nvidia’s stock closed at $120.69, a 0.6% decrease [1].

malaysia increases semiconductor regulation

In response to U.S. pressure, Malaysia is planning to tighten its regulation of semiconductor trade [2][4][5]. The U.S. suspects that Nvidia’s AI chips are being diverted to China through Malaysia, violating export control regulations [2][4][5]. Malaysia’s Minister of Investment, Trade, and Industry, Zafrul Aziz, stated that the U.S. has requested Malaysia to closely monitor the flow of high-end Nvidia chips entering the country [2]. Zafrul added that a special task force has been formed with Malaysia’s digital ministry to enhance industry regulation [2].

singapore investigates ai chip exports

Singapore has been investigating the alleged illegal re-export of Nvidia AI chips to China, with the sales being processed through Singaporean companies [2][4][5]. Singapore has charged three men in a $390 million fraud case involving the suspected sale of servers containing Nvidia chips via Malaysia to China [2][5]. Singapore has requested assistance from the U.S. and Malaysia to investigate the movement of these servers [2][4]. Nvidia’s revenue from Singapore reached $7.7 billion in the third fiscal quarter of 2025, accounting for 18.15% of Nvidia’s total revenue [4][5].

nvidia navigates market volatility

Nvidia’s stock performance remains subject to market fluctuations and broader economic trends [3][7]. On March 25, 2025, Nvidia shares increased by 3.5% amid reports that the Trump administration might exclude the semiconductor industry from upcoming tariffs [7]. Despite this positive movement, Nvidia’s stock is still down 18% since the beginning of the year [7]. A financial analyst noted Nvidia’s dominance in the GPU market for AI applications as a key factor for investors [3]. Nvidia is also pursuing supply chain diversification to mitigate risks [3].

Bronnen

Trade curbs Stock overhang