Nvidia shares plummet: GPUs reaching China via Singapore on a large scale?
High tariffs on all goods from Mexico and Canada have put the US stock markets under pressure. For Nvidia, accusations from Singapore are making matters worse.
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Nvidia's share price plummeted by almost 9 percent on Monday, probably not only due to the tariffs introduced by US President Donald Trump on goods from Canada and Mexico and increased for goods from China. While these have caused overall losses on the US stock markets, the chip manufacturer is also facing an investigation in Singapore. It is suspected that servers from Dell and Supermicro with Nvidia chips were sent to Malaysia via Singapore, but that the country may not have been their true destination. The Straits Times reports from Singapore and adds that it is suspected that the hardware ultimately ended up in China, which would violate US sanctions.
Singapore as the second-largest market for Nvidia?
According to CNBC, however, the main reason for the price slide was probably the tariffs announced by the US against its two direct neighbors. At a press conference on Monday, Trump assured that the punitive measures against Mexico and Canada would actually come into force today, Tuesday. This threatens a North American trade war with unforeseeable consequences for the global economy, causing significant losses on the US stock markets. Nvidia is affected because although the US company does not produce chips, it does have other elements manufactured in Mexico, writes CNBC. However, Nvidia's key trade with Taiwan is not affected by the tariffs.
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According to the Straits Times, the investigation in Singapore did not come as a surprise. Just last week, according to the newspaper, three men were indicted there, accused of being responsible for the transfer of Nvidia chips to China. The country also came under increased scrutiny from US politicians after Nvidia announced that more Nvidia chips had recently been sold in the USA than in Singapore. Many would nominally be shipped from there to Malaysia, but may actually end up in China. Malaysia's government has already assured CNBC that it has no information that the chips are not being used in its country.
(mho)
