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Nvidia tumbles, leading chip stocks lower, on new US-China export restrictions

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The U.S. tightened the rules that ban the export of key AI technologies to China, sending chip stocks sharply lower in early trading.

shares led U.S. chipmakers lower in early Tuesday trading after Trade Secretary Gina Raimondo unveiled expanded restrictions on the sale of advanced technologies to China.

The rules also address a loophole in the previous restrictions, which allowed Nvidia to sell its A800 and H800 semiconductors, by focusing on overall performance as opposed to the computing power of individual chips. "If China can’t buy from the United States, they’ll just build it themselves," Huang told the paper."So the US has to be careful. China is a very important market for the technology industry.”

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