Nvidia witnessed a decline in its stock value, plummeting by approximately 5 per cent, marking its lowest point in nearly five months.
This drop was prompted by a recent report in The Wall Street Journal, which suggested that it might be compelled to cancel advanced chip orders worth up to $5 billion destined for China. This action is in response to the latest export restrictions imposed by the U.S. government.
Sources disclosed that Nvidia received notifications last week, informing the company that its AI chip orders, which were scheduled for delivery to major Chinese technology companies in the coming year, including Alibaba Group, ByteDance, and Baidu are now subject to the new export restrictions imposed by the U.S. Commerce Department.
Nvidia’s stock price tumbled to a low of $392.30, marking a 4.7 per cent decline and hitting its lowest point since mid-June. This decline is particularly notable given that Nvidia had been a major contributor to the 22 per cent surge in the Nasdaq index earlier this year. The stock now finds itself nearly 20 per cent below its record high closing price of $493.55, achieved on August 31. At present, it is down by 2.09 per cent.
The sources for this piece include an article in Reuters.