Nvidia stock hit a new milestone today. The company became the world’s most valuable business during a growing AI chip controversy. A Mumbai drugmaker was caught sending restricted chips to Russia. These chips, worth $300 million, were meant “to target sensitive sectors in Russia’s military-industrial complex.”
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Impact of AI Chip Controversy on Nvidia’s Market Position
Breaking Valuation Records
Nvidia’s stock beat Apple’s to become the world’s most valuable company at $3.53 trillion. Share prices jumped 18% in October, following OpenAI’s $6.6 billion funding news.
Dell, which made the servers with these chips, says it “follows all applicable global regulations and export controls.” They promised “swift and appropriate action, up to and including termination of our relationship” with rule-breakers.
The Mumbai Connection
Market trends changed when Bloomberg found Shreya Life Sciences‘ involvement. This Mumbai drugmaker sent Dell servers with Nvidia H100 chips to Russia. The founder once wrote about his work when “after the collapse of the Soviet Union the pharmaceutical market was practically reduced to zero.”
He wanted to “impart a new impetus and greater depth and content to Indo-Russian relations.” This unexpected involvement also affected Nvidia’s stock perception.
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Global Market Impact
The AI chip controversy showed India’s new role in tech trading. Ukraine’s leadership spoke against these deals. President Zelenskiy’s chief aide stated, “No one should profit from the lives of Ukrainians.” Additionally, the controversy had implications for Nvidia’s stock market reputation.
Main Chain, the trading firm involved, calls itself a company that “imports and wholesales computer equipment from various foreign manufacturers.”
Investor Response
Nvidia stock keeps rising despite these issues. Investment expert Russ Mould noted, “More companies are now embracing artificial intelligence in their everyday tasks and demand remains strong for Nvidia chips.” Investors still trust the company’s AI leadership. This continues even as officials investigate chip trading networks.
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The ties between Shreya Life Sciences and Russian bank Promsvyazbank PJSC raise more questions. The bank’s leaders have connections to Russia’s spy agency. Yet Nvidia’s market performance remains strong through these developments.