NVIDIA shares fall after the ban on the export of chips to China and Russia
Shares of NVIDIA lost 6.63% to $140.93 by 11:00 Moscow time, according to NASDAQ premarket data. By 12:40 Moscow time, the decline slowed down to 2.42%, the price of one security amounted to $150.94.
The decrease in quotations began after the publication of the company’s message about the ban by the US authorities to supply certain types of products to Russia and China, including Hong Kong. The restrictions are reported on the website of the US Securities and Exchange Commission (SEC).
On August 26, US officials introduced a new licensing requirement for all Nvidia (NASDAQ:NVDA) products containing the upcoming A100 and H100 integrated circuits. It also covers any future processors that can match the performance of the A100.
“Authorities indicated that the new licensing requirement would eliminate the risk that these products could be used or redirected to ‘military end use’ or ‘military end user’ in China and Russia,” Nvidia said in a statement.
The manufacturer indicated that it does not supply its products to customers in Russia.
“The company is engaging with customers in China to meet their planned or future data center purchases with products that are not subject to the new licensing requirements,” Nvidia added.