Nvidia’s stock plummeted nearly 3% on Thursday, extending its 7% decline from the previous day. The AI chipmaker reported that the US government has effectively banned exports of its chips to China, citing tighter trade rules. This move is expected to hit Nvidia’s revenue and earnings per share by 8-10%, with $15 billion to $16 billion in lost revenue.
The news comes as a surprise, given recent reports suggesting that President Trump had backed off plans to restrict Nvidia’s chip exports following a meeting with CEO Jensen Huang at Mar-a-Lago. However, Nvidia declined to comment on the matter.
Just two days after the company’s disclosure, Huang traveled to Beijing at the invitation of a domestic trade group. Earlier this week, Nvidia announced plans to produce up to $500 billion of AI infrastructure in the US within the next four years.
Other chip stocks also fell modestly on Thursday, with Advanced Micro Devices (AMD) down 1% and Broadcom (AVGO) dropping 2.1%. Intel (INTC) was hit less hard, falling 1.6%.
Despite this, chip manufacturer TSMC reported profits that topped estimates on Thursday, indicating strong demand for AI chips. The US government’s new restrictions on chip exports to China are expected to have a significant impact on the tech industry and its stock market.
Source: https://finance.yahoo.com/news/nvidia-stock-falls-again-market-cap-losses-near-270-billion-after-trump-administrations-new-export-controls-160422973.html