The US government banned NVIDIA from selling some chips in China
NVIDIA representatives reported that the US government banned them from exporting some high-end chips to China (including Hong Kong). This is reported by Reuters.
The US government fears that China will use these GPUs in military development, which is more than likely, and is trying to limit the military potential of the People’s Republic of China against the background of recent escalation.
Shares of NVIDIA fell 6.6% immediately after the announcement, followed by shares of AMD by 3,7%. It seems that AMD has also received a ban on the export of similar server chips AMD MI250. In general, since December of last year, the shares of both graphic chip manufacturers have fallen in price almost twice.
The U.S. Department of Commerce commented on the ban vaguely: “While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests”.
Representatives of the People’s Republic of China were more specific. China’s foreign ministry has accused the US of trying to impose a “technology blockade” on China, while China’s commerce ministry said the move would undermine the stability of global supply chains.
NVIDIA plans to record a $400 million loss because, according to Bernstein analysts, China accounts for up to 10% of NVIDIA chip sales for data centers.
We will remind you that NVIDIA continues to work in Russia and it seems that it is not going to stop supporting the terrorist country.