PanamaTimes

Friday, Mar 01, 2024

New U.S. curbs on sales of Nvidia AI chips to China spark selloff

New U.S. curbs on sales of Nvidia AI chips to China spark selloff

New restrictions on exports of cutting-edge chips from Nvidia Corp (NVDA.O) to China have signaled an escalation of the U.S. crackdown on Beijing's technological prowess and alarmed investors already worried about an industry downturn.
Shares of Nvidia fell 11% to $133.46 on Thursday, wiping out more than $40 billion in market value and dragging the Philadelphia SE Semiconductor Index (.SOX) down by more than 4%.

The U.S. move to restrict exports of two of Nvidia's top computing chips for artificial intelligence - the H100 and A100 - to China could hurt the company's business in the key market, according to a filing on Wednesday.

The action by Washington comes as tensions rise over access to advanced chip technology and the future of Taiwan, where Nvidia and nearly all other big semiconductor companies source their chips from.

"On the surface, it looks like the U.S. government is looking to refrain from sales of next generation advanced chips, 7 nanometers and below, specifically for military end use in China," said CFRA Research analyst Angelo Zino.

Rival Advanced Micro Devices Inc (AMD.O) was also asked on Wednesday to stop AI chip exports to China.

The Nvidia and AMD chips targeted by Washington are used for AI and machine learning applications, particularly building training modules for tasks such as natural language processing.

These modules could be also be useful for militaries in modeling bomb simulations and designing weapons.

Market watchers say the restrictions are likely to hit a swathe of Chinese tech companies including Alibaba Group Holding Ltd (9988.HK), Tencent Holdings Ltd (0700.HK), Baidu Inc , and Huawei Technologies Co Ltd [RIC:RIC:HWT.UL].

Nvidia also said on Wednesday that the move could interfere with the development of its flagship H100 chip, which is expected to ship later this year.

On Thursday, it announced the U.S. government has allowed exports and tech transfer needed to complete the development of the H100 chip. U.S. officials have also authorized the company to perform exports needed to provide support for U.S. customers of A100 through March 1, 2023.

The company has also been allowed to fulfill orders of the chips via its Hong Kong facility through Sept. 1, 2023. (https://bit.ly/3Q5YfhR)

Chinese customers are still required to obtain licenses from the U.S. government for the technology, a spokesperson for Nvidia said.

AMD did not respond to a request for comment on whether it received a similar authorization.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×