Nvidia (NASDAQ:NVDA) stock is a hot topic on Tuesday following news that the semiconductor company’s chips are still being bought in China despite a ban.

The U.S. has a ban in place that doesn’t allow China to buy advanced chips made by Nvidia. Even so, a recent report shows that several Chinese universities and research facilities have managed to circumvent this ban.

The reports note that these Chinese entities used resellers to obtain the chips. They did so by purchasing server products from companies that already included the chips made by Nvidia. It’s unclear if the Chinese resellers had acquired these server products before the expanded ban in November 2023.

NVDA Stock: Nvidia’s Response to the Reseller Report

Here’s what Nvidia had to say about the matter in a statement to the South China Morning Post:

“If we determine that any product was subsequently resold in violation of US export control rules, we’ll work with our customers to take appropriate action […] If we become aware that a third party has exported or re-exported without the required licenses, we investigate the matter and take appropriate action.”

NVDA stock is up 3.4% as of Tuesday morning and is up 70.6% year-to-date (YTD). Today’s rise comes with some 15 million shares traded, as compared to a daily average of about 53.6 million shares.

There are even more stock market stories traders are going to want to read about below!

We have all of the hottest stock market news available on Tuesday! That includes why stocks are up today, the latest news from Affirm (NASDAQ:AFRM) and more. All of this info is available at the following links!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.