Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares fell 6.3% in after-hours trading on Tuesday, while fellow chipmaker AMD dropped 7.1%, after the U.S Commerce Department unveiled new export restrictions targeting their artificial intelligence chips bound for China.
The revised rules impose licensing requirements on Nvidia’s H20 and AMD’s MI308 processors, along with equivalent models, as part of Washington’s ongoing efforts to tighten control over advanced semiconductor technology.
The move deepens the trade and tech rift between the US and China and hits two of the sector’s biggest names at a time when global demand for AI hardware is booming.
Nvidia, which has relied heavily on Chinese demand for its H20 chip, warned it would take a $5.5 billion charge following the new export curbs.
The Commerce Department said the measures are aimed at protecting national and economic security in line with the White House’s broader strategic objectives.