The U.S. government is contemplating new restrictions on the export of AI chips to China in an effort to limit China’s technological advancements and contain its rising influence.
The ban, which may go into effect as soon as next month, would prevent Nvidia Corp. (NASDAQ:NVDA) and other chipmakers from shipping their products to clients in China and other nations of concern without a license, according to a report published by the Wall Street Journal on Wednesday.
Premarket Reactions
Shares of U.S. chipmakers experienced steep declines in the premarket, with Nvidia Corp. down 3.5%, Advanced Micro Devices Inc. (NASDAQ:AMD) down 3%, Marvell Technology, Inc. (NASDAQ:MRVL) down 2.7% and ON Semiconductor Corp. (NASDAQ:ON) down 1.9%.
Other large-cap semiconductor stocks were also in the red, with Broadcom Inc. (NASDAQ:AVGO) down 1.2%, Intel Corp. (NASDAQ:INTC) down 1.1%, ASML Holdings (NASDAQ:AMSL) down 0.9% …
