- Nvidia Stock and some other artificial intelligence chip companies fell on Tuesday morning amid new restrictions on US exports to China.
- This is a step forward from the export restrictions previously announced by the Biden administration.
- Nvidia said it doesn’t expect an immediate major financial hit, but it expects a long-term decline in sales.
Nvidia Shares of some other chipmakers fell on Tuesday morning after the United States announced new restrictions on exports of artificial intelligence chips to China.
Chip stocks have surged in the past year due to increased demand for AI products and services powered by AI chips. The new restrictions on exports to China come on top of previously announced restrictions on artificial intelligence chips that the Biden administration put in place last year.
Nvidia fell about 6%, Broadcom
It fell by about 3.5 percent. Marvel
a decrease of 3.3% and 3.5% respectively.
The new restrictions ban the sale of the H800 and A800, slower versions of Nvidia chips that were allowed to be exported to China under the old restrictions. “These updates are specifically designed to control access to computing power that will significantly slow down China’s development of next-generation advanced models and can be used in ways that threaten the United States and our allies, particularly because they can be used for military purposes and modernization,” US Commerce Secretary Gina Raimondo told reporters.
Nvidia does not believe the increased restrictions will have an immediate material impact on its financial results. However, the company expects a loss on the sale in the long term, according to an August statement.