Nvidia shares plummeted by 4% on Wednesday after a Bloomberg report revealed that the US administration is exploring additional curbs on chip sales to China. The talks are in its early stages, and new restrictions would likely target Nvidia’s H20 chips, which meet existing US restrictions on shipments.
In response, Nvidia stated it is willing to collaborate with the Administration on AI initiatives. However, the company emphasized that Biden-era thresholds were set five years ago and may not accurately reflect current performance levels of leading products.
The news comes during a tumultuous week for Nvidia shares, which experienced its worst one-day market cap loss in history on Monday. The stock’s slide was partly attributed to concerns over a new AI model from Chinese startup DeepSeek, which uses cheaper chips and less data. This raised worries about future chip sales and the dominance of US hyperscalers.
Nvidia shares rebounded 9% on Tuesday, but Wednesday’s move suggests that investors remain cautious. The company’s large customers, including Tesla, Microsoft, and Meta, are expected to provide updates on demand for AI chips after the market close on Wednesday.
Source: https://finance.yahoo.com/news/nvidia-falls-4-after-report-of-potential-additional-curbs-on-china-sales-185442684.html