Tech Shares Slide After Nvidia Warns Of $5.5-B Hit From U.S. Export Curbs

Shares of major chipmakers fell sharply after Nvidia said tighter U.S. export controls on advanced AI chips would cost the company $5.5 billion in potential sales, according to a regulatory filing reported by the Associated Press.

U.S. Senator Elizabeth Warren called for stricter enforcement of export restrictions on high-performance AI chips to China.

Nvidia’s stock dropped 5.8% in pre-market trading on Wednesday, April 16, while rival AMD lost 6.5%.

The company disclosed that the U.S. government had indefinitely extended licensing requirements on the export of Nvidia’s H20 AI chips and others with similar bandwidth, citing national security concerns that the products could be used in Chinese supercomputers.

The announcement follows calls by U.S. Senator Elizabeth Warren for stricter enforcement of export restrictions on high-performance AI chips to China. Asian tech stocks also took a hit, with Japan’s Advantest sliding 6.7%, Disco Corp. losing 7.6%, and Taiwan’s TSMC down 2.4%.