Nvidia (NVDA), the AI chip giant that powers many of today’s top AI tools and data centers is putting more focus on how its partners follow U.S. export rules. CEO Jensen Huang said Super Micro Computer Inc. (SMCI), a server maker that builds AI systems with chips from firms like Nvidia, needs to improve its risk checks after Taiwan detained three people linked to an alleged AI server-smuggling case.
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High conviction NVDA bears now have this Tradr ETFMeanwhile, despite the company’s latest earnings beat, NVDA shares dropped nearly 2% on Friday, closing at $215.33.
Huang Sends a Clear Message
The case marks Taiwan’s first major push against chip smuggling, which has grown as the U.S. has limited sales of top AI chips to China. Huang said Nvidia is “rigorous” in explaining export rules to its partners. Still, he made clear that each partner must run its own checks.
“Ultimately, Super Micro has to run its own company,” Huang told reporters in Taipei. He added, “I hope that they will enhance and improve their regulation compliance and avoid that from happening in the future.”
That is a rare public note from Huang about one of Nvidia’s key server partners. As a result, the comments may add more pressure on Super Micro, which has already faced close watch over how its servers move through the global supply chain.
Super Micro Says It Will Strengthen Controls
Super Micro said it is committed to working with partners to protect advanced U.S. tech and trade secrets. The company also said it will further strengthen its global trade program.
The Taiwan case is not directly tied to a separate U.S. case involving Super Micro servers. However, both cases point to the same core risk: demand for Nvidia’s AI chips is high, and some buyers may try to route them into markets where sales are blocked.
From Nvidia’s perspective, this does not appear to be a direct legal issue for the chip maker. However, it shows that export controls remain a key risk for the AI trade. Nvidia still needs strong demand from global buyers, but it also needs partners that can keep its chips out of banned markets.
Is NVDA a Good Stock to Buy?
Turning to the Street, Nvidia Corporation has a Strong Buy consensus, based on 39 analysts’ ratings. The average NVDA price target is $301.32, implying about 40% upside from the current price.
