NVIDIA is celebrating another win as Malaysia has officially imposed new export restrictions on advanced AI chips, further tightening the global supply chain for high-end GPUs. The decision requires companies to obtain an export license before shipping powerful AI chips out of the country.
This comes amid broader efforts by the U.S. and its allies to limit China’s access to cutting-edge technology.
The Malaysian move mirrors recent actions by Singapore, which cracked down on illegal chip shipments linked to Chinese buyers. With the U.S. already blocking NVIDIA from selling its China-focused H20 GPUs, Malaysia’s announcement removes a potential workaround, which ironically benefits NVIDIA by reducing the grey market competition and reinforcing investor confidence.
NVIDIA’s stock surged by 4.9% in premarket trading following the news. This gain adds to the positive momentum since its May earnings report, which showed minimal impact from U.S. export controls. Investors are now more bullish than ever, especially with the global AI boom still in full swing.
To address previous restrictions, NVIDIA has resumed taking orders for its H20 GPUs, banking on future approval from U.S. regulators. Meanwhile, Malaysia’s new rules could help solidify NVIDIA’s dominance, as unauthorized GPU exports become more difficult.
According to UBS, up to 12% of NVIDIA’s revenue may be tied to Malaysia, highlighting how critical the country is to the company’s international supply chain. Under the new regulation, firms must notify Malaysian authorities 30 days ahead of any planned AI GPU exports-an added hurdle for shadow buyers attempting to circumvent U.S. policy.
The new regulations underscore a broader geopolitical strategy: safeguard American AI leadership while minimizing the risk of military misuse by rival nations. Despite CEO Jensen Huang’s warnings that isolating China could backfire, U.S. officials remain steadfast, prioritizing national security over market access.
As a result, NVIDIA appears to be the unlikely beneficiary of a global tech cold war-its technology more in demand than ever, while the routes to acquire it are getting tighter and more controlled.