Nvidia stock falls after U.S. announces new chip export restrictions


Share post:

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

Nvidia and a number of other chipmakers saw shares fall Tuesday morning after the U.S. announced new restrictions on exports of AI chips to China.

Shares of chip stocks have boomed in the last year due to the increased demand for AI products and services, which is powered by AI chips.

The new restrictions on exports to China are a step up from previously announced restrictions on AI chips that the Biden administration had implemented over the last year.

Nvidia was down about 6%, and Broadcom was down about 3.5%. Marvell and Intel were down 3.3% and 3.5%, respectively.

The new restrictions ban the sale of the slowed-down version of Nvidia chips, the H800 and A800, that were allowed to be exported to China under the old restrictions.

“The updates are specifically designed to control access to computing power, which will significantly slow the PRC’s development of next-generation frontier model, and could be leveraged in ways that threaten the U.S. and our allies, especially because they could be used for military uses and modernization,” U.S. Commerce Secretary Gina Raimondo said on a call with reporters.

Nvidia believes that the increased restrictions will not immediately lead to a material effect on its financial performance. However, the company expects a loss in sales in the longer term, according to a statement from August.

Don’t miss these CNBC PRO stories:

Source link


Related articles

Airbnb CFO to move to new role with focus on growth, Brian Chesky says

Airbnb Chief Financial Officer Dave Stephenson will transition into a newly created chief business officer role at...

Company to cut 5% of employees

Jeff Lawson, CEO of Twilio, during the Singapore FinTech Festival in Singapore on Nov. 17, 2023.Lionel Ng...

Alaska-Hawaiian airline merger faces Justice Department scrutiny

An Alaska Airlines aircraft flies past the U.S. Capitol before landing at Reagan National Airport in Arlington,...

Rockstar Games publishes Grand Theft Auto trailer early after it was leaked on X

Strauss Zelnick, CEO of Take Two Interactive.Adam Jeffery | CNBCShares of video game publisher Take-Two Interactive Software...