Chip firms fall as US intensifies crackdown on semiconductor shipments to China

VMware

17/10/2023 15:06

(Updates)
    ** Chip stocks fall as Biden administration plans to halt
shipments to China of more advanced AI chips designed by Nvidia
and others, to prevent China from getting access to cutting-edge
U.S. tech
    ** Shares of chip firms Nvidia  NVDA.O , Advanced Micro
Devices  AMD.O , Intel  INTC.O  and Qualcomm  QCOM.O  down
between 1.6% and 7% 
    ** New rules will have effect of halting sales of Nvidia's
A800 and H800 chips for China market - senior administration
official
    ** NVDA says it does not expect the curbs to have a
meaningful impact on financial results in the near term 
    ** Rules will also restrict a broader swathe of advanced
chips and chipmaking tools to countries including Iran and
Russia, and blacklist two more unnamed Chinese companies
involved in advanced chipmaking
    ** Shares of peer Broadcom  AVGO.O  down 3.5% at $871.51;
Dennis Dick, market structure analyst at Triple D Trading, cites
a report that China could block a deal with cloud computing firm
VMware  VMW.N  
    ** Up to last close, NVDA stock had risen ~198% YTD

 (Reporting by Arsheeya Bajwa in Bengaluru)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))