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Nvidia Stock Plummets Amid AI Server Indictment and Price Hikes

Guavy AI Editorial Team
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NVDA
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Nvidia's stock price plummeted by 2.4% after Taiwanese prosecutors indicted a senior manager over alleged shipments of AI servers into China, circumventing US trade restrictions.

The indictment involves 74 B300-equipped servers that were allegedly routed through Japan and Indonesia to avoid export controls.

This move has raised concerns about 'process risk' for the entire chip sector, with investors applying a higher 'risk premium' due to uncertainty around future revenue.

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