Nvidia (NVDA) Stock: Chipmaker Debuts Location Tracking Software While Shares Slip on Oracle News

TLDR

• Nvidia unveiled opt-in tracking software that monitors AI chip locations through telemetry data and IP addresses
• The company confirmed the system has no remote kill switch and only collects read-only data
• U.S. lawmakers are pushing the Chip Security Act to mandate location verification in advanced AI chips
• Justice Department found smuggling operations moved over $160 million in Nvidia chips to China
• Nvidia stock dropped 1.3% after hours following Oracle’s disappointing earnings and high spending guidance

Nvidia introduced software that tracks where its AI chips operate globally. The opt-in service lets customers monitor GPU health while providing location data through a dashboard interface.

NVIDIA Corporation, NVDA

The tracking system collects telemetry including IP addresses and timestamps. Customers can view their chip deployments by region or specific compute zones. Nvidia emphasized the software contains no remote control features.

Export Control Pressure Mounts

The software launch follows mounting pressure from Washington to prevent chips from reaching restricted countries. Senator Tom Cotton introduced the Chip Security Act in May with bipartisan support. The proposed legislation would require security mechanisms and location verification in advanced AI chips.

Justice Department investigations uncovered smuggling rings that moved more than $160 million in Nvidia chips to China. Current export rules prevent Nvidia from selling advanced chips to Chinese companies without special licenses.

Chinese officials responded by warning Nvidia against installing backdoors or vulnerabilities. Beijing blocked local tech firms from purchasing Nvidia products after conducting national security investigations. China hasn’t approved imports of Nvidia’s H200 chips despite U.S. clearance.

Oracle Results Pressure Shares

Nvidia stock fell 1.3% in after-hours trading after Oracle reported weak earnings guidance. Oracle forecast lower-than-expected earnings for the current quarter and announced $50 billion in capital expenditures for fiscal 2026.

The cloud company’s spending estimate jumped from previous forecasts of $35 billion. Oracle’s remaining performance obligation reached $523 billion, slightly below analyst expectations.

Oracle buys data center chips from Nvidia through major contracts. The weak guidance sparked concerns about converting AI infrastructure spending into revenue.

CoreWeave stock dropped over 3% after hours. The AI cloud provider also purchases Nvidia chips and partners with OpenAI. Broadcom, Marvell Technology, and AMD fell between 0.5% and 1%.

Oracle has sold billions in bonds recently to fund AI buildout plans. The cost of insuring Oracle’s debt against default reached its highest point since March 2009 last week.

Tracking Technology Details

The location tracking works through client software that customers install on their systems. The technology maps network information and system signals to physical or cloud locations. Nvidia posted screenshots showing IP addresses and location details in the dashboard interface.

The software provides visibility into chip deployment without granting Nvidia remote access. Customers maintain full control over their hardware while sharing location data voluntarily.

President Trump indicated plans to ease some export restrictions. Rules governing cutting-edge AI chips will remain in place. The tracking software could help enforce these continuing restrictions.

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