Nvidia Jensen Huang CEO gives the main address to CES 2025, the annual consumer electronics fair, in Las Vegas, Nevada, USA 6 January 2025.
Steve Marcus | Reuters
Alarm bells disappeared in 2024 when Singapore unexpectedly became Nvidia The second largest source of revenue. The detection encouraged a widespread speculation that the chips of artificial intelligence NVIDIA are directing in China.
These concerns were enhanced in January after Chinese deep It broke out on the international scene AI for sophistication and reported on the cost -effectiveness of its model. Deepseek’s AI is dressed on NVIDIA GRAPHIC PROCESSION units, despite the limitations of exports intended not to remain from China technology.
Singapore is working to remove the shadow network in the traffic of NVIDIA top AI chips, and at the end of last week, the authorities detained three people there on the accusation of intentionally misplacing the final destination of the server that probably contained highly sought after chips.
Singaporean Internal Affairs and Minister of the Law K Shanmugam Discovered Monday that servers from Jersey and Super micro computer were shipped to Malaysia, asking a critical question: Was Malaysia truly the ultimate destination?
Nvidia refused to comment on any of these events.
Nvidia shares have fallen almost 8%on Monday, and now they have been reduced by 14%at the age of 2025, which is a diamond that has pushed the company’s market border below $ 3 trillion. Super Micro shares fell on Monday by 11%and Dell’s stock fell about 6%.
While Singapore firmly rejected the allegations to serve as a guide in China, Nvidia emphasized a key difference in what it means to be a buyer in his annual report filed last week.
In the fiscal year, Singapore ended 18% of the total revenue of NVIDIA, approximately $ 24 billion on the basis of a “customer collection location”, but less than $ 2%, about $ 473 million, in terms of products delivered to the country.
“Customers use Singapore for centralization of invoicing, while our products are almost always delivered elsewhere,” Nvidia said in her annual report.
Singapore’s arrests show that a sophisticated reseller network still works despite the increasing supervision.
Mizuho analysts warn that any comprehensive ban on the export of NVIDIA Chip could eliminate four billion to $ 5 billion from the projected revenue of NVIDIA for this fiscal year. The company announced on its call for earnings in the fourth quarter that the sale of data in China, in the percentage of the total revenue of the Data Center, remained significantly below the level of export control. “
As the digital boundaries harden between the east and the west, silicon smugglers can find new routes. However, the AI dominance race ensures that this high role game will continue, and implications are far beyond corporate earnings.
