Nvidia Drops on Report US Plans More AI Chip Curbs for China
- Nvidia slid as much as 3% in after-hours trading in New York
- US increasingly concerned about Beijing’s technology ambitions
A Nvidia Corp. chip.
Photographer: I-Hwa Cheng/BloombergThis article is for subscribers only.
Nvidia Corp. led declines in tech stocks on a report that the US may further tighten chip-export restrictions, potentially denting sales in the world’s top semiconductor market.
Nvidia, which gets about one-fifth of its revenue from China, slid 2.4% as the market opened in New York, clawing back some earlier losses. Rival Advanced Micro Devices Inc. fell about 1.6%. The two lead the market for chips vital to the development of generative artificial intelligence models such as ChatGPT. In China, traders unloaded a slew of AI-related stocks, pushing Inspur Electronic Information Industry Co. and Unisplendour Corp. — both key hardware suppliers — down 10%.