The share price of Nvidia Corp plunged sharply on Tuesday after the report of US curbing measures of semiconductor exports to China. The new rules are seen to be a huge blow to Nvidia as the company had just developed some chips to specifically meet original restrictions imposed last year.
Citing the need to prevent national security, the Biden Administration has been imposing bans on exporting advanced microchips and equipment to China in fear of using them to strengthen the military.
According to several reports, the new rule would prevent Nvidia from selling A800 and H800 GPUs chips in China. These two chips had been modified to meet restrictions that were first implemented in October 2022. Now it could be for nothing.
Nvidia’s shares fell as much as 7.84% to $424.80 not long after the market opened on Tuesday before paring some loss to currently trade nearly 4% from the closing price of $460.95 on Monday.
The source also said that the rule will also affect Gaudi2, an Intel AI chip as well. Intel’s shares dropped as much as 4% after the opening bell.
Meanwhile, the share price of Advanced Micro Devices (AMD) fell 4.56% in an early session, but parring loss to only 0.51% below yesterday’s closing level.