Last Updated: June 27, 2023 7:55 PM ET
Premiering: June 27, 2023 at 6:30 PM ET
Shares of Nvidia and Advanced Micro Devices fell in extended trading on Tuesday after reports that the Biden administration is considering a new ban on AI chip sales to China.
Nvidia shares NVDAA rose 3.1% before falling 3% to close at $418.76 after hours. AMD shares also fell 3% to close at $110.39 after gaining 2.7% in regular trading.
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Shares of Nvidia and Advanced Micro Devices fell in extended trading on Tuesday after reports that the Biden administration is considering a new ban on AI chip sales to China.
nvidia stock
NVDA
After gaining 3.1%, AMD shares fell 3% after hours to close at $418.76.
AMD
After gaining 2.7% in normal trading, it fell 3% to close at $110.39.
Late Tuesday, The Wall Street Journal reported that the Commerce Department could further block the sale of AI chips to China unless the US company obtains a special license first.
The ban follows a similar ban last year that threatened NVIDIA’s $400 million in revenue, but the company has found a workaround by supplying a version of the product that circumvents the ban.
read: AMD launches new data center AI chips and software to take on Nvidia and Intel
Nvidia and AMD both launched new AI chips this year. Nvidia launched his March and AMD earlier this month. Open AI’s ChatGPT generation AI was released last year after Microsoft Corp. invested billions of dollars.
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The result is an explosion of interest in artificial intelligence technology, with celebrities touting it as the biggest of all.
read: Bill Gates says AI is just the second game-changing technological advance of his lifetime
News of a possible ban happened to hit earlier in the day following a complaint from Baidu Inc.
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According to the Chinese search firm’s blog, the company’s Ernie 3.5 version AI outperformed the earlier version of ChatGPT in its “overall proficiency score”, and the latest version, GPT-4, released in mid-March, ” In terms of functionality,” he said. “
Baidu’s claims appear to be based on performance metrics published in the China Science Daily. On Wall Street, Baidu’s ADR fell 0.7% after hours and rose 3.1% to close at $143.90.
As of Tuesday’s close, NVIDIA’s stock is up 187% in 2023, while AMD’s stock is up 70%.
read: Snowflake Adds Partnerships with Nvidia and Microsoft for AI Double Play
Shares of Super Microcomputer Co., Ltd.
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Companies that have benefited from AI also fell 3% after hours.
INTC
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Shares of the company that supplies chips to data centers fell 1% after hours.
