It was down 6.5% in extended trading on Wednesday, and in the pre-market on Thursday has fallen an additional 4.3% at time of writing. What do the new chip restrictions mean for investors?įor investors in Nvidia, it definitely means some short term pain, as the stock has crashed off the back of the news. When you deposit $100, we’ll add an additional $100 to your account. Nvidia has applied for an exemption to the new regulations, but currently there has been no indication on whether the government will be prepared to relax the rules.ĭownload Q.ai today for access to AI-powered investment strategies.

Rival chip-maker AMD also announced similar restrictions to one of their chips, the MI250 artificial intelligence circuit, however this is not a major seller for the company and they don’t expect it to move the needle on their revenue. The new restrictions will also apply to Russia, but Nvidia do not currently have any Russia-based clients and therefore won’t see an impact on their business. Analysts were expecting this figure to jump again to $15.9 billion in 2022, ahead of this announcement. While they are most well known for their gaming chips, the data center business has grown strongly, with revenue increasing from $6.7 billion in 2020 to $10.9 billion in 2021. The chips in question are mainly found in data-centers, which has been a growing component of Nvidia's business.

Nvda stock after hours stock price