U.S. Cracks Down on Unlicensed Nvidia GPU Shipments
Warning! GuruFocus has detected 5 Warning Signs with NVDA.
The Department of Justice alleges that between October 2022 and July 2025, Chuan Geng and Shiwei Yang used their El Monte firm, ALX Solutions, to funnel millions of dollars' worth of H100 GPUs through Singapore and Malaysia before sending them to China, all without the required Commerce Department licenses. Both face up to 20 years in prison under the Export Control Reform Act.
Geng was released on a $250,000 bond after a federal magistrate hearing, while Yang remains in custody with an August 12 detention review and a September 11 arraignment set. The case underscores how carefully regulated AI hardware has become, with authorities determined to prevent advanced computing technology from reaching adversarial nations
Nvidia shares dipped on the news, reflecting investor concern that tighter enforcement could slow shipment volumes or invite further scrutiny of supply-chain partners.
Investors should care because this legal action highlights the risk that enforcement could tighten, potentially disrupting Nvidia's growth in international markets. The next milestone will be the August 12 hearing and any statements from the Commerce Department.
This article first appeared on GuruFocus.
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