Nvidia Stock Drops 6% as U.S. Limits Exports to China

Dow Jones2022-09-01

Nvidia can't catch a break.

Late Wednesday, the chip maker said in a filing the U.S. government has informed the company it has imposed a new licensing requirement, effective immediately, covering any exports of Nvidia's A100 and upcoming H100 products to China, including Hong Kong, and Russia.

Nvidia's A100 are used in data centers for artificial intelligence, data analytics and high-performance computing applications, according to the company's website.

Nvidia (ticker: NVDA) shares fell by 6.33% to $141.38 in after hours trading.

Nvidia said it doesn't sell any products to Russia, but noted its current outlook for the third fiscal quarter had included about $400 million in potential sales to China that could be affected by the new license requirement. The company also said the new restrictions may affect its ability to develop its H100 product on time and could potentially force it to move some operations out of China.

The latest development comes after a series of weak financial results from Nvidia. Last week, the company gave a revenue forecast for the October quarter that was significantly below expectations, citing a difficult macroeconomic environment and a rapid slowdown of demand.

Last Friday, Barron's said more trouble lies ahead for the chip maker and that investors looking for a quick turnaround may be disappointed.

Nvidia's stock has declined by about 49% this year, versus the 32% drop in the iShares Semiconductor ETF $(SOXX)$, which tracks the performance of the ICE Semiconductor Index.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
44