Nvidia Corp NVDA and several peer chipmakers were trading lower Wednesday amid reports of the U.S. adopting a stricter stance over China's AI ambitions.
The U.S. plans to tighten export controls announced in October to restrict sales of some artificial-intelligence chips to China, amid growing concerns about selling the technology to a critical strategic competitor, Bloomberg reports.
Nvidia CFO Colette Kress said he is aware of the new restrictions and expects no material change to its earnings from the latest embargo.
The move partly aimed at Nvidia's A800 chip, which the chipmaker designed after the earlier controls.
China accounts for 20% - 25% of China's data center sales. Any ban on exports to that country would represent a loss of opportunity, she added, Bloomberg notes.
Nvidia stock is up 191% YTD.
Price Action: NVDA shares traded lower by 2.31% at $409.13 on the last check Wednesday.
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