NVIDIA’s shares plummeted at £ 5.5 billion (£ 4.2 billion) because computer chip companies strengthened export rules to China.
At the center of the AI boom, the company needs a license to export the H20 AI chip to China.
This rule is part of the upward war between the United States and China, and the two countries introduce steep trade tariffs dealing with various products.
NVIDIA stocks fell 6.5% in early Wednesday. The listed NASDAQ exchange fell 2.3%.
The company announced on Tuesday that last week, the US government announced that the H20 chip demanded sales permit from China, including Hong Kong.
The technical giant said the federal officials advised that the license requirements would be “applied to the indefinite future.”
NVIDIA said, “The (government) pointed out that the license requirements deal with the risk of being used or converted to China’s supercomputers.
The company rejected more opinions when contacting the BBC.
Marc Einstein of CounterPoint Research Consultancy said NVIDIA’s $ 5.5 billion popularity is consistent with his estimates.
But he said, “This is definitely a lot of money, but this is what NVIDIA can withstand.”
Einstein said, “As you have seen in the last few days and weeks, this can be a negotiation tactics, but I will not only affect NVIDIA, but I will not be surprised at seeing some exemptions and changes in the tariff policy in the near future if it affects the entire US semiconductor.
The chip remains a battlefield for technology advantage in the US race, and US President Donald Trump wants to be a very complex and delicate manufacturing process that has now been completely performed for decades for decades.
NVIDIA’s AI chip was the main focus of US export control. Founded in 1993, the product was originally known for creating a type of computer chip in the original graphics, especially computer games.
Before the AI Revolution, I started adding a function to the chip. It is now considered a key company to see how quickly AI -based technology is spreading in the business world.
The company’s value was popular in January when it was reported to have been built as part of the cost of other chatbots in January.
At that time, the United States was considered to have been exposed by rivals.
NVIDIA said that $ 5.5 billion in claims will be related to the H20 products for inventory, purchase agreements and related protection areas.
The founder of Tech buzz china podcast, Rui MA, said that if the limit is maintained, the US and China AI semiconductor supply chains are expected to be “completely separated.”
She added: “It is meaningless for Chinese customers to rely on US chips,” he said.
