Nvidia (NASDAQ:NVDA) fell 0.6% after hours Monday and Advanced Micro Devices (NASDAQ:AMD) fell 0.5% following a Bloomberg report that US officials are considering caps on AI chip exports to Chinese companies.
Unlock the hottest news by upgrading to InvestingPro - get 55% off today The report said the Trump administration has discussed limiting Chinese firms to buying 75,000 of Nvidia’s H200 chips each. Shipments of AMD’s MI325 chips, which have similar capabilities, would also count toward a customer’s cap, according to people familiar with the matter.
The proposed limit is less than half of what companies like Alibaba Group Holding and ByteDance privately told Nvidia they would like to purchase. These accelerators are used to develop and run artificial intelligence models.
Total shipments to China could still reach as many as a million units, the people said, citing an upper bound Trump’s team set earlier in the regulatory process. However, the lion’s share of current applications come from a small number of Chinese tech giants, which under per-customer caps could collectively receive hundreds of thousands at most.
