(News Bulletin 247) – Nvidia shares opened sharply lower on the New York Stock Exchange on Wednesday amid the threat of escalating trade tensions between the United States and China, whose semiconductor manufacturers are always the first to suffer.
According to the Wall Street Journal, the Biden administration is considering limiting exports of artificial intelligence (AI) chips to China, leading to a sell-off in tech stocks.
According to calculations made by analysts at Wells Fargo, Nvidia – which manufactures graphics processing units (GPUs) intended in particular for autonomous driving, cryptocurrency mining and AI – has made more than 20% of its turnover in China (Hong Kong included) over the past financial year.
The American broker recalls in this respect that the United States had already banned, at the end of August 2022, the export to China of high-performance graphics chips.
The broker points out that Nvidia had then estimated the impact of these measures at some 400 million dollars on its turnover per quarter.
The group had however found the solution by revising the performance of its A800 chips downwards, the speed of which had been restricted to 400 gigabits per second (Gb / s) in order to comply with the restrictions imposed by Washington, which concerned products from a power of more than 600 GB/s.
Despite its decline of 2.2% today, the title still shows an increase of 186% since the beginning of the year and preserves a market capitalization now greater than 1,000 billion dollars.
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