Nvidia Leads Sell-Off After Report of More U.S. AI Chip Curbs

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Nvidia this year designed less-capable chips that fall under thresholds that require a Commerce Department license before export to China. Photo: Bloomberg

(Bloomberg) — Nvidia Corp. led declines in tech stocks after a report Washington could close loopholes in the sale to China of powerful chips used to train artificial intelligence (AI), potentially denting sales in the world’s top semiconductor market.

Nvidia, which gets about a fifth of its revenue from China, slid as much as 3.2% in after-hours trading in New York. Rival Advanced Micro Devices Inc. fell about 3%. The two lead the market for chips vital to the development of generative AI models such as ChatGPT. In China, traders unloaded a slew of AI-related stocks, pushing Inspur Electronic Information Industry Co. Ltd. and Unisplendour Corp. Ltd. — both key hardware suppliers — down 10%.