Shares of Nvidia, Super Micro Computer, and Dell took a hit on Monday as Singapore launched an investigation into whether servers containing banned chips from China made their way to Malaysia. Police in Singapore have arrested several individuals for their alleged involvement in the procurement and shipment of Nvidia chips in violation of American sanctions.
Singapore is now seeking more information from Malaysia and the U.S. to determine the final destination of the Dell and Super Micro Computer servers. According to Law Minister K Shanmugam, the purchasers deceived suppliers about where the equipment was ultimately headed.
This investigation could lead to increased scrutiny of equipment exports by American companies, potentially impacting sales growth. The news comes at a time of investor caution ahead of higher U.S. tariffs on goods from China, Mexico, and Canada.
Nvidia stock was down 6%, Super Micro Computer stock fell 9%, and Dell slipped 4.5% on Monday afternoon. In contrast, Intel stock received a boost on reports that its chip manufacturing business could benefit from its competitors.
Nvidia and Broadcom are reportedly testing chip manufacturing with Intel on its most advanced 18A process for cutting-edge chips like those used for AI. Intel stock was up 1.5% on Monday, while Taiwan Semiconductor Manufacturing Corp. (TSMC) saw a 2.5% drop in its U.S.-traded shares.
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