Nvidia Stock Stutters. China AI Chip Smuggling Fears Return

$NVIDIA Corp(NVDA)$  

Dow Jones

17:22

Nvidia stock was edging down on Friday. The chip maker looks to be in a holding pattern but there are renewed questions over how Chinese companies are seeking access to its hardware.

Nvidia$NVIDIA Corp(NVDA)$   shares were down 0.5% at $144.77 in premarket trading. Futures tracking the benchmark S&P 500 were down 0.1%.

Nvidia stock has surged from lows of less than $100 in late April, remaining just short of its record high of $149.43 reached in January. Investors are looking for further evidence to justify pushing the market value above its current $3.55 trillion.

The company's presence in the artificial intelligence industry keeps spreading. Nvidia's venture-capital arm has taken part in the latest funding round for TerraPower, a nuclear developer backed by Bill Gates.

There isn't much news on the stock but one issue that continues to cast a shadow on Nvidia is allegations that its chips are being smuggled for use by Chinese companies. Malaysian authorities are investigating reports that a Chinese company in the country used servers fitted out with Nvidia AI chips, The Wall Street Journal reported this week.

Nvidia didn't immediately respond to a request for comment early on Friday.

Nvidia CEO Jensen Huang has previously said the Trump administration's restrictions on chip exports to China will cost his company $15 billion in sales, and claimed the limits are counterproductive as they will encourage the growth of the domestic Chinese chipmaking industry.

Among other chip makers, Advanced Micro Devices was up 0.1% and Broadcom was down 0.4% in premarket trading.

#ai #chips #war 

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