Taiwan reportedly indicted NVIDIA employees for exporting prohibited AI servers to China

NVIDIA announced its Groq 3 LPX AI accelerator is in full production, offering 3,400 output tokens per second on the Gemma 4 31B model. The company claims it is 4x faster than the nearest alternative for agentic AI workloads. Nebius will be the first AI cloud to adopt the technology, with Groq among early adopters.

Asian stocks fell sharply, led by Samsung Electronics (down 8.9%) and Alibaba (down 10%). Investors await Nvidia's earnings and Fed signals. U.S. futures also declined. Samsung's shareholder return plan disappointed, while Alibaba's share placement raised $10.2B for AI. Trade tensions added to market uncertainty.

Nvidia Corp. announced full production of its AI inference accelerator, Groq 3 LPX, designed to enhance AI agent performance. The chip, part of the Vera Rubin platform, aims to reduce latency in AI tasks. Nebius Group N.V. is the first customer. Nvidia claims the chip delivers 3,400 tokens per second, four times faster than rivals. Nvidia acquired Groq Inc. for $20 billion in December 2023. SpaceX is also a new customer, using Vera Rubin for its AI architecture.

Taiwanese prosecutors indicted a senior Nvidia manager and eight others, including two from Super Micro Computer, for allegedly smuggling advanced AI chips to China, circumventing US trade restrictions. The case involves 74 servers with high-end B300 chips and 56 seized servers. Prosecutors seek five years for the Nvidia manager, described as the 'core figure'. Nvidia itself is not accused of wrongdoing. Taiwan Semiconductor Manufacturing Co. is a key partner for Nvidia. US officials allege bill

Broadcom (AVGO) is raising $60B+ in debt via a special-purpose vehicle (SPV) to finance AI chip leasing, with Bank of America estimating $370B exposure by 2029. NVIDIA (NVDA) has a similar structure exceeding $500B. Both stocks fell this week as investors assess the risk. Guarantees could be strained if AI demand declines, as noted by CNBC reporter Kristina Partsinevelos.

NVIDIA's stock fell 2.3% ahead of its Q2 2027 earnings report, with consensus targeting $92B revenue and $2.09 EPS. Concerns include potential AI server price hikes, insider selling, and broader market uncertainty due to geopolitical tensions and high interest rates. The Nasdaq and S&P 500 also declined, with the 30-year Treasury yield near 5.27%.