US Considers Further AI Chip Export Restrictions to China, Nvidia and AMD Stocks Plummet

Nvidia Corp. and other tech stocks experienced a decline after reports suggested that the US may tighten restrictions on the sale of powerful chips used for training artificial intelligence to China. Nvidia, which generates about 20% of its revenue from China, fell as much as 3.2% in after-hours trading. The potential curbs could impact sales in the world's largest semiconductor market. The move reflects the Biden administration's efforts to contain China's technological rise and could escalate tensions between the two countries. While this may hurt Nvidia's and AMD's business with China, the two chipmakers remain leaders in the AI development sector, attracting investment globally. US officials are also considering restricting cloud services leasing to Chinese AI companies.