Nvidia Stock Tumbles Over 8% Amid Reports of AI Chip Sales to China.
Nvidia's stock price sank 8.8% Monday to its lowest closing price since last September as reports surfaced of the tech giant's AI chips reaching China despite export controls. The company's latest Blackwell chips are reportedly being sold through third-party resellers using entities registered in nearby regions, violating export controls. Nvidia has argued that it is not accountable for its resellers selling into China, but this stance may be challenged by new restrictions.
- The ongoing saga highlights the challenges of enforcing export controls in a globalized supply chain, where companies can exploit loopholes to circumvent regulations.
- How will the US government's efforts to strengthen export controls impact Nvidia's ability to operate in the Chinese market and access lucrative AI contracts?