Nvidia, AMD stocks fall on report of new AI chip bans from Biden administration

Shares of Nvidia Corp.
NVDA,
+3.06%
and Advanced Micro Devices Inc.
AMD,
+2.68%
slumped in the extended session Tuesday following a report that the Biden administration is considering a new ban of sales of AI chips to China. Late Tuesday, the Wall Street Journal reported the Commerce Department could further block sales of AI chips to China without obtaining a special license first. Nvidia shares fell after a 3.1% rise to close at $418.76, and AMD shares fell 2%, after a 2.7% gain in the regular session to close at $110.39. Both Nvidia and AMD have launched new AI chips this year. The ban would follow upon similar actions last year that threatened $400 million in Nvidia sales, but the company found a workaround in supplying a version of products that avoided the ban. At the close, Nvidia shares were up 187% in 2023, and AMD shares were up 70% for the year.