September 2, 2022
Nvidia shares fell 11%, the highest in a single day since 2020, while Advanced Micro Devices shares lost nearly 6%, with the index losing more than 3% on Thursday.
The drop follows an announcement by Nvidia and Advanced Micro Devices that US authorities have ordered them to stop supplying sophisticated artificial intelligence processors to China.
About $40 billion of Nvidia’s stock market value has disappeared, while the current valuation of all companies listed on the Philadelphia semiconductor index has fallen by about $100 billion, resulting in the exchange of more than $11 billion in Nvidia shares, most of which are on Wall Street.
Nvidia warned that the limited shipment of two of its best artificial intelligence computer chips, the H100 and A100, could cost the company $400 million in future earnings to China in the current fiscal quarter.
Advanced Micro Devices also said that U.S. officials had informed the company that they would stop shipping its best artificial intelligence chip to China, but that this would not have a significant impact on its operations.
The sources for this piece include an article in Reuters.
