Nvidia stock (NVDA) hit a 52-week low on Thursday after U.S. officials imposed a new license requirement for the company’s AI chip exports to China and Russia.
Shares of the chipmaker were down more than 7% as of the market close amid a broader sell-off for markets on Thursday.
Nvidia indicated approximately $400 million in potential sales to China may be impacted by the new license requirement.
“The USG indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia,” Nvidia’s 8-K filing stated. The company does not sell products to customers in Russia.
The government measure will impact Nvidia’s A100 and H100 integrated chips. In its latest SEC filing, the chipmaker said it obtained some licenses to support U.S customers in China.
The geopolitical trade tensions come at a bad time for chipmakers, as analysts warn of softening demand in the second half of the year and into 2023.
Nvidia’s third-quarter forecast announced in August came in $1 billion short of Wall Street expectations.
Meanwhile, Micron (MU) cut its chip revenue forecast after announcing its quarterly results in August, while AMD’s (AMD) third-quarter sales outlook came in light of expectations, though its cloud business remains strong. AMD stock also fell on Thursday in light of the export ban.
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Source: https://finance.yahoo.com/news/nvidia-stock-hits-new-52-week-low-144344596.html