U.S. officials order Nvidia to halt sales of top AI chips to China
01 Sep 2022
Nvidia (NASDAQ: NVDA) Corp. is trading down 1.52% at 143.84
Chip designer Nvidia (NASDAQ: NVDA) Corp said on Wednesday that U.S. officials told it to stop exporting two top computing chips for artificial intelligence work to China, a move that could cripple Chinese firms’ ability to carry out advanced work like image recognition and hamper Nvidia’s business in the country.
The announcement signals a major escalation of the U.S. crackdown on China’s technological capabilities as tensions bubble over the fate of Taiwan, where chips for Nvidia and almost every other major chip firm are manufactured.
Nvidia shares fell 6.6% after hours. The company said the ban, which affects its A100 and H100 chips designed to speed up machine learning tasks, could interfere with the completion of development of the H100, the flagship chip it announced this year.
Shares of rival Advanced Micro Devices (NASDAQ: AMD) Inc fell 3.7% after hours. An AMD spokesman told Reuters it had received new license requirements that will stop its MI250 artificial intelligence chips from being exported to China but it believes its MI100 chips will not be affected. AMD said it does not believe the new rules will have a material impact on its business.
Nvidia said U.S. officials told it the new rule “will address the risk that products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China.”
On technical fronts Nvidia (NASDAQ: NVDA) Corp: RSI stood at 25.41 and currently, it is trading below all MA. So, the SELL position can be taken with the following target and stop loss: