The United States is considering new restrictions on exports of artificial intelligence (AI) chips to China, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Shares of Nvidia fell more than 2 percent, while Advanced Micro Devices (AMD) fell about 1.5 percent on the news in extended trading.
The Commerce Department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July, the report said.
Nvidia, Micronand AMD are among the US chipmakers caught in the crossfire between China and the Biden administration.
In September, Nvidia had said that US officials asked the company to stop exporting two top computing chips for artificial intelligence work to China.
Months later, the Jensen Huang-led Nvidia said it would offer a new advanced chip called the A800 in China to meet export control rules. The company also tweaked its flagship H100 chip earlier this year to comply with regulations.
But the new curbs being mulled over by the department would ban the sale of even A800 chips without a special US export license, the report added.
The Commerce Department did not immediately respond to a Reuters request for comment.
© Thomson Reuters 2022
