NVIDIA Corporation (NASDAQ:NVDA) saw its share price take a 3% hit in US pre-market trades in response to the latest round of chest-thumping from the US administration.
According to a Wall Street Journal report, the US is contemplating additional limitations on the export of artificial intelligence (AI) chips to China, a large source of revenue for Nvidia.
The report says the Commerce Department plans to halt the shipment of chips produced by Nvidia and other chip manufacturers to Chinese customers, possibly commencing as early as July.
The Biden administration had already imposed export restrictions on the most advanced microchips developed by Nvidia, Micron and AMD in 2022.
Responding to requests from the Biden administration in September last year, Nvidia announced a new set of A800 chips to be exported to China in compliance with export control regulations.
But these new curbs may even ban the sale of those modified A800 chips to China.
Nvidia, which has emerged as a critical figure in the rapidly advancing AI industry, has seen its market value skyrocket in 2023.
Despite the recent share price hit, the California-based group is still valued at one trillion dollars.