Nationgate’s shares fell 14% on Tuesday to reach 1.45 Malaysian ringgit ($0.34). Shares pared back losses over the rest of the week, but are still down over 10% from Tuesday.
The company did not immediately respond to Fortune’s request for comment.
NationGate is the only company in Southeast Asia that assembles Nvidia’s highly sought-after graphic processing units (GPUs) into AI servers. Nvidia’s GPUs are the most used in high-performance AI applications.
But the AI boom and the link to Nvidia are also a risk for NationGate. In early March, Malaysia and neighboring Singapore faced U.S. allegations of being channels for controlled chips to make their way to China. U.S. officials were reportedly interested in whether DeepSeek, the scrappy Chinese AI startup, got its hands on Nvidia processors it wasn’t supposed to have.
NationGate has distanced itself from the subject and has clarified that it’s not involved in any investigations. Yet investors are still spooked. NationGate’s shares are down over 40% year-to-date.
