In fact, Nvidia lost up to $40 billion of its stock value on this day alone. In addition, the 30 companies that make up the Philadelphia Semiconductor Index collectively lost about $100 billion in market value.
Even Nvidia’s stock was the most volume-heavy in New York today, reaching $11 billion, more than any other Wall Street company.
What happens is that with this decision by the Joe Biden administration that implies the restriction of exports to China of two of Nvidia’s main computer chips for AI, the H100 and the A100, it could affect $400 million in potential sales to China in its current fiscal quarter.
AMD also said it was told by US authorities to stop exporting its main AI chip to China, though it said it doesn’t think the new rules will have a material impact on its business.
Operators maintain that “Washington’s ban is a sign of intensifying crackdowns on China’s technological developmentat a time when tensions are running high over the fate of Taiwan, where components designed by most American chip companies are made.”
Source: Ambito
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