Singaporean authorities are probing a possible fraud case involving Nvidia’s (NVDA) AI chip shipments. The investigation focuses on whether servers provided by Dell Technologies (DELL) and Super Micro Computer (SMCI) contained NVDA chips and were meant to be sent to China, potentially violating U.S. export restrictions. This probe puts the spotlight on the role of intermediaries in the global semiconductor trade and the challenges in enforcing export controls.
The servers in question arrived in Singapore from the United States and were supposed to be sent to Malaysia. However, there are suspicions that they were intended for a Chinese AI firm, DeepSeek.
Singapore’s Home Affairs Minister, K Shanmugam, has stated that authorities are working with U.S. and Malaysian peers to uncover more details about these shipments. So far, three people have been charged with fraud, and there are indications that the chips might have been illegally sent to China.
In case the investigation in Singapore leads to restrictions or delays in shipments, Nvidia’s operations could be disrupted, impacting its ability to meet demand.
U.S. Makes Efforts to Restrict Technology Access
The probe comes as the United States has ramped up efforts to limit the other countries’ access to restricted technologies. This move is driven by rising concerns over national security, economic competitiveness, and the potential misuse of advanced technologies.
It is worth highlighting that last month, U.S. President Donald Trump gave indications to impose a 25% tariff on semiconductor chips and pharmaceutical imports. These tariffs are expected to disrupt international trade and prompt companies to set up U.S. factories to avoid the duties.
In response to these threats, chip giant Taiwan Semiconductor (TSM) disclosed plans to invest $100 billion in the United States. This investment aligns with efforts to boost chip production and strengthen its tech capabilities in the U.S. It is possible that other chip companies could follow TSM’s suit to bolster their supply chain in the U.S.
What Is the Prediction for NVDA Stock?
Turning to Wall Street, NVDA stock has a Strong Buy consensus rating based on 38 Buys and three Holds assigned in the last three months. At $178.66, the average Nvidia stock price target implies 56.64% upside potential.
