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Chinese AI shares fall as fears of tighter Nvidia chip curbs grow

Chinese AI shares sold off further as investors worried that Washington could tighten its limits on Nvidia chips. The curbs could also weigh on Southeast Asia's AI boom.

Illustration: A single glossy processor board with a glowing core sits on a seamless electric blue backdrop, next to a small stack of memory modules.
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Chinese artificial intelligence shares sold off further as investors worried that Washington could tighten its curbs on Nvidia chips. The concern grew after scrutiny of former Nvidia CEO Jensen Huang, which could push US restrictions on Chinese access to advanced American processors even further.

China's Semiconductor Manufacturing International Corporation (SMIC) expects artificial intelligence computing power to stay in short supply for the next two years. The chipmaker is betting on a relentless buildout of data centres, and tighter US curbs could speed China's reliance on domestic foundries.

In numbers

2028SMIC chip shortage horizon

The curbs could also weigh on Southeast Asia's AI boom. Separately, Nscale, a company linked to Nvidia chips, updated its IPO filing to show a wider loss, a sign of how volatile that part of the market has become.

Documents also point to Jane Street lifting its Nvidia holdings to over twice their earlier size in the last quarter.

GuideFear and Greed Index today: how fearful or greedy US stock investors are

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