Key Takeaways:
- Nvidia said it has been told by the U.S. govt to stop selling chips in China and Russia.
- The share price of NVDA has dropped 10% in extended trading over the last five days.
- Shares of Nvidia rival Advanced Micro Devices Inc also fell 3.7% in the last 24 hours.
LAGOS (CoinChapter.com) — Nvidia stock (NVDA) fell significantly in extended trading on Thursday following the United States government’s order that asked the company to stop selling certain computing chips to China and Russia.
In detail, the share price of NVDA has dropped by more than 10% in the last five days following the U.S. government’s decision to restrict Nvidia chip sales in China. In an SEC filing, Nvidia disclosed that the U.S. government had placed a new license requirement for future exports to China.
The company said the restriction would affect the A100 and H100 products, graphics processing units sold to businesses.
“The license requirement also includes any future Nvidia integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits.”
Nvidia filing said.
The U.S. government argues that the new requirement reduces the risk of the products being used by the Chinese military. But, notably, the move could cripple Chinese firms’ ability to conduct certain advanced operations and research. Although it also impedes Nvidia’s business in China.
Alongside China, the sale restriction order also applies to Russia. However, it is worth noting that Nvidia currently doesn’t sell its chips to Russia.
Additionally, Reuters reported that the U.S. Department of Commerce would not say what other new requirements were enacted to prohibit AI chip sales to China. It’s, however, worth noting that the prohibition comes from heightened tension between the U.S. and China following Nancy Pelosi’s visit to Taiwan.
Pelosi Accused Of Insider Trading
Meanwhile, Nancy Pelosi has also been accused of insider trading following actions leading to the halting of chip sales to China. Recall that Pelosi and her husband dumped Nvidia stock ahead of the government’s move to proscribe the chip sale.
According to Pelosi’s regulatory filing, her husband sold 25,000 NVDA at $165.05 last month, worth $4.1 million. Notably, the filing revealed that Pelosi had lost $341,365 in the transaction. But several users remain unimpressed, claiming the speaker and her husband sold because they were aware of the coming ban.
“I like how at the time we were all. Haha they took the loss so everyone would hop relax about insider trading. Manages to sell for a small loss instead of catastrophic.”
Hugh Henne said.
“Politicians should not be allowed to trade. They’ve outperformed the S&P. The whole lot should go to jail for insider trading. Dozens of them.”
Another Twitter user said.
Advanced Micro Devices (AMD) Shares Plunges
Meanwhile, the shares of Nvidia rival Advanced Micro Devices Inc (AMD) fell 3.7% in extended trading today. Additionally, the technology company’s shares have decreased by over 10% in the last five days.
However, AMD spokesperson has posited that the company does not believe the new requirements would cause a material impact on its business.
