By David Jagielski, CPA, The Motley Fool
Publication Date: 2026-03-30 18:20:00
The U.S. government has charged multiple people connected with Super Micro Computer (NASDAQ: SMCI) with smuggling Nvidia (NASDAQ: NVDA)‘s advanced chips to China, including Wally Liaw, a co-founder of Super Micro. Given the close relationship between the two companies, it’s not surprising that Nvidia’s stock has been falling amid these concerning developments.
While there’s no reason to believe the tech company is involved in any wrongdoing, it would suggest that at least some of its growth can be attributed to the Chinese market — something that investors have largely assumed hasn’t been the case. Here’s why this can be a big problem for the tech giant.
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Investors have been bullish on Nvidia’s stock due to the expectation that there is much more growth to come from the business in the future. And one market that has been largely off-limits of late but that has been seen as a potentially lucrative growth opportunity for Nvidia is China. Last year, CEO Jensen Huang estimated that the overall artificial intelligence (AI) market in China could reach $50 billion within the coming years.
For Nvidia, China has represented a huge growth opportunity, and that has enabled investors to remain fairly bullish…
