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[KUALA LUMPUR] Malaysia’s NationGate was caught in the fallout of Singapore’s investigation into the alleged fraudulent transfer of Nvidia’s advanced artificial intelligence (AI) chips, sending its shares crashing nearly 30 per cent on Monday (Mar 3) before trading was halted for an hour on Tuesday.

Trading volume of the electronics manufacturing service provider, one of the most actively traded stocks on Bursa Malaysia, surged to nearly 49 million shares as investors rushed to offload the stock on Monday. The losses wiped out gains the counter made since December 2023 as it rode on the AI wave.

In response to an Unusual Market Activity query from Bursa Malaysia late Monday, NationGate distanced itself from the probe, clarifying that it it is not involved in the ongoing Singapore investigation concerning the alleged fraudulent movement of Nvidia chips.

Singapore’s authorities on Monday charged three individuals with fraud, alleging they misrepresented end-users of Dell and Super Micro servers containing Nvidia chips. The servers were shipped from Singapore to Malaysia, and investigators are now determining whether Malaysia was the final destination or merely a transit point.

Singapore’s Minister for Law and Home Affairs K Shanmugam emphasised that the probe was conducted independently and not at the request of the US, despite speculation about links to US export controls.