Nvidia Shares Drop on Concerns Over Canceled Chip Orders to China Due to New U.S. Export Rules
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Nvidia shares dropped around 5% to nearly 5-month low after Wall Street Journal report that Nvidia may have to cancel up to $5B in advanced chip orders to China due to new U.S. export restrictions.
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Nvidia was notified last week that 2023 AI chip orders to major Chinese tech companies like Alibaba, ByteDance, and Baidu are subject to new U.S. Commerce Dept export controls.
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New U.S. export rules announced earlier this month aim to stop China from getting cutting-edge U.S. tech for military use and go into effect in November.
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Nvidia said new export controls won't have meaningful impact in near term and there is high demand for its advanced chips.
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Nvidia stock has fallen nearly 20% from Aug 31 record high as investors worry about impact of export controls on company's business.
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