After the latest US restrictions are imposed on the sale of artificial intelligence (AI) chips to China, some major chipmakers like Nvidia and AMD face a major fall in share prices.
Nvidia mentioned that the US government will need set up a new license, with immediate effect, in order to avoid the risk of chips being used, sold, or delivered to the militaries of Russia and China.
Besides, there is further risk that the rule might cause a loss of millions of dollars in revenue for chip manufacturers. The share prices of both chip makers have slid down drastically in the after-hours trading in NYSE. The shares of Nvidia went down by around 6.6% and AMD by 3.7%.
Several personalities shared their views to the media regarding the new restrictions. While Dan Ives of Wedbush Securities spoke to the media and mentioned that the latest restrictions can be like a hard punch for Nvidia. The US Commerce Department expressed that it was not the right time to practice changes in the policy.
Nvidia stated that the requirement for a new license will have a negative impact on the exports of its A100 and H100 chips. These chips were made to help systems speed up their learning tasks. They further said that approximately £345.2m of the sales to China will be affected. They also further speculate if the customers deny purchasing products from other companies due to delay in getting the licenses or denied licenses, the nation might face a huge down fall.
However, the spokesperson of AMD spoke to the media and said that the rules, that will prevent the shipment of its MI250 chips to China, might not have a material impact on their business.
Well, according to some analysts, the changes in policies can bring more difficulties for China in the area of semiconductor chips for advanced computing.