Nvidia Corp shares tumbled over 7% on Monday after a report emerged that Chinese buyers were circumventing US export controls to get hold of its latest chips.
Chinese traders were selling systems housing Nvidia’s Blackwell chips by sourcing the products through third parties in nearby regions, The Wall Street Journal reported.
Such moves would violate US export rules, with the report also noting some sellers were promising six-week delivery times to buyers.
Following the report, news emerged that Singapore was probing Nvidia customers Dell and Super Micro Computer for potential US export control violations.
Servers possibly containing Nvidia chips were said to have been routed from Singapore to Malaysia - reportedly a throughpoint of chip smuggling to China.
“Anonymous traders cannot acquire, deliver, install, use, and maintain Blackwell products in unauthorized countries,” an Nvidia spokesperson said.
“We will continue to investigate every report of possible diversion and take appropriate action.”
Shares were down 7.3% at $115.75 on Monday.