U.S. chip stocks tumbled on Thursday, with the main semiconductor index down more than 3 per cent after Nvidia and Advanced Micro Devices said U.S. officials told them to stop exporting cutting-edge processors for artificial intelligence to China.
As of mid-day, about $40 billion worth of Nvidia's stock market value had evaporated. The 30 companies making up the Philadelphia semiconductor index lost a combined about $100 billion worth of stock market value.GRAPHIC: GRAPHIC-Nvidia's stock falls from grace AMD also said U.S. officials told it to stop exporting its top artificial intelligence chip to China, but that it does not believe the new rules will have a material impact on its business.
"We see an escalation in US semiconductor restrictions to China and increased volatility for the semiconductors and equipment group following NVIDIA's update," Citi analyst Atif Malik wrote in a research note.