Dell Technologies Inc.'s stock price plummeted 5.02% in intraday trading on Monday, significantly underperforming the broader market. This sharp decline appears to be primarily linked to concerns over potential regulatory scrutiny on the company's involvement in the AI chip supply chain to China.
Multiple reports surfaced that Dell servers, along with those from Super Micro Computer, may have been used to facilitate the delivery of Nvidia's advanced AI chips to China, despite ongoing U.S. export controls. Singapore authorities are investigating a fraud case involving Dell and Super Micro servers that were allegedly shipped from Singapore to Malaysia, raising suspicions that the final destination could be China.
The news has sparked fears among investors that Dell could face increased regulatory scrutiny and potential restrictions on its ability to sell servers containing Nvidia's AI chips. Nvidia's stock itself fell nearly 5% as concerns mounted over the potential impact of further export controls on its business with China.
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