Nvidia faces continued concerns about potential restrictions on exports of its AI hardware amid reports that advanced chips are reaching China despite U.S. sanctions.

Semiconductor stocks fell sharply on Monday amid worries that companies in China are using workarounds to get the latest offerings from Nvidia (NASDAQ:NVDA) and President Trump's announcement that tariffs will go into effect tomorrow on Canada and Mexico.

Nvidia stock fell as much as 5% Monday as reports surfaced of the tech giant’s AI chips reaching China, raising investor fears the company might face more scrutiny around its exports.

Nvidia stock slumped Monday as investors continued to find excuses to unload shares of the once-highflying AI company. Nvidia shares closed down 8.7% at $114.06, the lowest close since Sept. 18, when it closed at $113.

A report from "The Wall Street Journal" revealed that despite restrictions, the latest Nvidia chips are entering China. Amidst rising trade tensions, this may lead the Trump administration to impose additional controls or tariffs.