• Nvidia's stock fell 8.7% to its lowest closing price since September, driven by reports that its Blackwell AI chips are being smuggled into China through third-party resellers, violating U.S. export controls. This decline follows a broader trend of Nvidia shares dropping over 12% in the past week, raising concerns about the company's ability to control its supply chain and comply with regulatory restrictions. The situation is exacerbated by ongoing investigations into Nvidia's customers, Dell and Super Micro, for potential violations related to these shipments.

• The market reaction reflects growing investor anxiety regarding Nvidia's future sales in China, especially as the Biden administration's export controls continue to tighten. Analysts suggest that Nvidia's argument of not being accountable for resellers may not hold up under increasing scrutiny. Additionally, the company's recent earnings report indicated strong revenue from Blackwell products, but the potential for further restrictions could significantly impact Nvidia's market position and financial performance moving forward.