US chip makers hit by new China export rule

Source: BBC News [UK state media]

“Shares of major chipmakers Nvidia and AMD have fallen amid concerns of new US restrictions on the sale of artificial intelligence chips to China. Nvidia says the US government requires a new licence, effective immediately, to address the risk of chips being ‘used in, or diverted to a ‘military end use’… in China and Russia.’ There are fears the rule could lead to millions of dollars in lost revenue. Shares of both chipmakers slipped in after-hours trading in New York. Nvidia’s shares were down by 6.6% while AMD slipped 3.7%. The new restrictions are a ‘gut punch for Nvidia,’ Dan Ives of Wedbush Securities told the BBC. Chinese officials have firmly opposed the latest move. According to state media, ‘actions from the United States deviated from the principle of fair competition and violated international economic and trade rules.” (09/01/22)