Last updated: Jun 27, 2023 at 7:39pm ET
Initial publication: June 27, 2023 at 6:30 p.m. ET
Nvidia Corp. shares and Advanced Micro Devices Inc. slumped in Tuesday’s extended session after it was revealed the Biden administration is considering a new ban on selling AI chips to China.
Nvidia shares NVDAA fell 3% in after-hours trading after rising 3.1% to close at $418.76, while AMD shares also fell 3% after gaining 2.7% in the regular session had, and closed at $110.39.
Late…
Nvidia Corp. shares and Advanced Micro Devices Inc. slumped in Tuesday’s extended session after it was revealed the Biden administration is considering a new ban on selling AI chips to China.
Nvidia shares NVDA A fell 3% in after-hours trading after rising 3.1% to close at $418.76, while AMD shares also fell 3% after rising 2.7% in the regular session. had gained and closed at $110.39.
Late Tuesday, The Wall Street Journal reported that the Commerce Department could further block sales of AI chips to China unless US companies first get a special license.
The ban followed similar actions last year that threatened Nvidia’s $400 million in sales, but the company found a workaround by shipping a version of the product that circumvented the ban.
Read: AMD is launching new AI chips for data centers, software intended to compete with Nvidia and Intel
Both Nvidia and AMD launched new AI chips this year: Nvidia in March and AMD earlier this month. Last year’s release of Open AI’s generative AI ChatGPT – into the Microsoft Corp. MSFT has invested billions of dollars – led to an explosion in interest in artificial intelligence technology and prompted luminaries to herald the technology as the greatest thing in tech since… .
Read: According to Bill Gates, AI is only the second revolutionary technical advance in his life
News of the potential ban happened to follow a claim by Baidu Inc.’s BIDU on the Chinese search company’s blog that the AI version of Ernie 3.5 outperformed the earlier version of ChatGPT “in overall skill scores” and the latest version, GPT-4 , which was released in mid-March, “in multiple Chinese language features.”
Baidu’s claim appeared to be based on performance metrics published in China Science Daily. On Wall Street, Baidu’s ADRs fell 0.7% in after-hours trading after rising 3.1% to close at $143.90.
As of Tuesday’s close, Nvidia shares are up 187% in 2023 and AMD shares are up 70% this year.
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Shares of Super Micro Computer Inc. SMCI, which has benefited from AI, are also down 3% in after-hours trading, while shares of Intel Corp. INTC, which supplies chips to data centers, saw shares fall 1% in after-hours trading.