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    Home»Latest News»Nvidia shares fall after it says US controls on exports of AI chip will cost it $5.5 billion

    Nvidia shares fall after it says US controls on exports of AI chip will cost it $5.5 billion

    CFL Staff WriterBy CFL Staff WriterApril 16, 2025No Comments2 Mins Read
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    BANGKOK – Shares in laptop chip makers slumped in after-hours buying and selling and in Asia after Nvidia stated tighter U.S. authorities controls on exports of laptop chips used for artificial intelligence will value it an additional $5.5 billion.

    The corporate, which introduced Monday that it’ll produce its synthetic intelligence tremendous computer systems in america for the primary time, stated the federal government advised it that its H20 built-in circuits and others of the identical bandwidth could be topic to the controls for the “indefinite future.”

    In a regulatory submitting, it said the federal government stated the controls addressed dangers that the merchandise “could also be utilized in or diverted to, a supercomputer in China.”

    Nvidia’s shares fell 6.3% in after-hours buying and selling. Shares in rival chip maker AMD dropped 7.1% after markets closed.

    Asian know-how giants additionally noticed massive declines. Testing gear maker Advantest’s shares fell 6.7% in Tokyo, Disco Corp. misplaced 7.6% and Taiwan’s TSMC dropped 2.4%.

    Earlier, studies had stated the Trump administration had backed away from imposing stricter licensing necessities on the H20 chip. Commerce Division officers weren’t instantly accessible for remark early Wednesday.

    Nvidia said Monday it has commissioned a couple of million sq. toes of producing house to construct and check its specialised Blackwell chips in Arizona and AI supercomputers in Texas — a part of an funding the corporate stated will produce as much as half a trillion {dollars} of AI infrastructure within the subsequent 4 years.

    The announcement comes after President Donald Trump and different officers stated tariff exemptions on electronics like smartphones and laptops had been solely a brief reprieve till officers develop a brand new tariff strategy particular to the semiconductor trade.

    Trump claimed that call as a victory for his effort to increase manufacturing within the U.S.

    Copyright 2025 The Related Press. All rights reserved. This materials will not be printed, broadcast, rewritten or redistributed with out permission.



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