2023-10-31 17:03:00
© Archyde.com. A smartphone with the Nvidia logo is displayed in front of a main computer board in an illustrative photo taken on March 6, 2023. Photograph: Dado Rović/Archyde.com.
NEW YORK (Archyde.com) – Nvidia shares fell nearly 5 percent on Tuesday to a five-month low following a report said the artificial intelligence chip giant may have to cancel $5 billion worth of advanced chip orders to China to comply with new U.S. restrictions.
A report published by the Wall Street Journal quoted sources as saying that Nvidia was notified last week that orders for artificial intelligence chips that were scheduled to be delivered next year to giant Chinese technology companies, such as Alibaba, ByteDance, which owns the TikTok application, and Baidu (NASDAQ:) are subject to the latest restrictions. Export announced by the US Department of Commerce.
Nvidia shares recorded $392.30, falling 4.7 percent to the lowest level since mid-June. The stock, which was one of the main drivers of the index’s gains, fell almost 20 percent from the highest record closing level of $493.55 on August 31.
Earlier in October, the Biden administration imposed restrictions on the export of more artificial intelligence chips produced by Nvidia and other companies to China in a move aimed at preventing Beijing from obtaining the latest American technology to strengthen its army.
The new rules come into effect in November and include export restrictions to other countries, including Iran and Russia.
(Prepared by Muhammad Harfouche for the Arabic Bulletin – Edited by Ali Khafaji)
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