Shares National Gate HoldingsNVIDIA’s only manufacturing partner in Southeast Asia has been beaten this week after the company revealed a raid by Malaysian authorities on one of its subsidiaries.
On Tuesday, National Gatt admit The Malaysian Anti-Corruption Commission (MACC) raided the homes of a wholly-owned subsidiary Nationgate Solutions as part of an ongoing investigation into scrap metal smuggling.
Nationgate shares fell 14% on Tuesday to reach 1.45 Malaysian ringgit ($0.34). Stocks cut losses for the rest of the week, but fell more than 10% from Tuesday.
On Thursday, National Gatt statement The raid does not involve any specific board members or senior management, and the company does not expect its financial or operations to be hit significantly.
The company did not respond immediately wealth Request a comment.
Malaysia’s National News Agency Report On Tuesday, the MACC launched a crackdown on scrap metal smuggling groups operating in five states, resulting in an estimated tax loss of 950 million Malaysian ringgit ($223.9 million). The report added that preliminary investigations showed that the groups exported scrap metals to India, China and other countries but reported them as machinery or other metals with a 15% export tax imposed by the government.
Nationgate ranks 243rd in Southeast Asia 500, yes Fastest growth Company opening wealth Revneuue ranks the largest companies in the region. Sales surged 720% in 2024 to MYR 5.3 billion (US$1.6 billion), thanks in large part to growth in its data computing sector.
Nationgate is the only company in Southeast Asia to assemble NVIDIA’s highly sought-after graphics processing unit (GPU) into AI servers. NVIDIA’s GPU is the most commonly used GPU in high-performance AI applications.
But the AI boom and connection with Nvidia are also risks to Nationgate. In early March, Malaysia and neighboring Singapore faced U.S. charges as a channel for controlled chips to enter China. According to reports, U.S. officials are interested in deepseek (the chaotic Chinese artificial intelligence startup deepseek).
Singapore’s Law and Home Minister K Shanmugam explain In March, servers containing chips controlled by the U.S. appeared to have been sent to Malaysia. Malaysian Trade Minister Tengku Zafrul Abdul Aziz later said officials were investigating and vowed to take necessary actions.
In addition, Singapore also has charged Three men who were fraudulent for allegedly misrepresenting end users of computer servers that could contain NVIDIA chips.
Monday, Malaysia Announce Now, exports of all high-performance U.S. AI chips will require export licenses, and individuals and companies must notify the government at least 30 days before shipping such hardware.
Nationgate distanced from the subject and clarified that it was not involved in any investigation. But investors are still scared. Nationgate’s stock has reached more than 40%.
