Posted on 09/02/2022 5:00:04 AM PDT by FarCenter
In another step aimed at stifling China’s technological advance, the US Department of Commerce has decided to restrict shipments of advanced graphics processing units (GPUs) designed by American companies NVIDIA and AMD to China. The US government says it is worried about potential military applications of these products.
GPUs are a type of integrated circuit used in graphics and video image generation, high-performance computing and the acceleration of artificial intelligence (AI) and machine learning. NVIDIA and AMD, both based in California, are the 9th and 10th largest semiconductor companies in the world as ranked by revenue in 2021.
The stock prices of both companies dropped on the sanctions news, NVIDIA’s precipitously. After falling 12% intraday, NVIDIA’s shares closed down 7.7% on September 1. AMD closed down 3.0%. Both stocks fell further in after-hours trading.
But let’s put the news in wider context. Nvidia was down 59.8% from its 52-week high (highest price in the past year) and AMD down 49.9%. Both stocks peaked last November.
Applied Materials, the largest maker of semiconductor production equipment, dropped 2.4% on September 1 and was down 45.0% from its 52-week high. Intel declined by only 0.5% on September 1 but was down 43.6% from its 52-week high. The SOX semiconductor index has declined by 35.5% since peaking last December.
In the short term, the new restrictions on NVIDIA and AMD are simply the latest in a series of negative signals that have brought the recent semiconductor bull market to an end.
(Excerpt) Read more at asiatimes.com ...
Must be holding out for more graft.
Wait, wait, wait. I thought they told us it was racist to sanction China.
Must be holding out for more graft.
^^^^^^^^^^^^^^^^^^
Wait, wait, wait. I thought they told us it was racist to sanction China.
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you all nailed it
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