The U.S. is trying to tighten the screws on Chinese AI. What that means for stocks

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The U.S. is planning to ban the sale of more high-end semiconductors to China.

The artificial intelligence behind ChatGPT-like products and autonomous driving is driving enormous demand for Nvidia's chips in China. In the past week, however, analysts cut their Nvidia price targets after news the U.S. plans to ban the sale of more high-end semiconductors to China. The country accounts for at least one-fifth of Nvidia's big data center business .

"Everyone noticed that GPU is not the perfect solution for AI so it's more easy to convince people to use our solution," he said. Kneron raised $49 million in late September. Simply testing AI models also requires significant processing power, which can get expensive to operate amid a shortage of chips.

 

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