Advanced Micro Devices (NASDAQ: AMD) stock is losing ground in Tuesday's trading. The company's share price was down 1% as of 11:15 a.m. ET, according to data from S&P Global Market Intelligence.
The U.S. Department of Commerce announced today that it was extending and updating restrictions on exporting ultra-high-end semiconductors to China. The move is intended to curb China's growing artificial intelligence (AI) capabilities and has been highlighted by analysts as a particularly unfavorable development for AI leader Nvidia, but it could have a negative impact on AMD's business as well.
As a result of new restrictions introduced by the Commerce Department, Nvidia will be prohibited from selling modified versions of its most advanced GPUs in China. Notably, the company had specifically modified its A800 and H800 GPUs in order to comply with previous rules introduced by the U.S. and allow them to be eligible for sale in the Chinese market. Intel's Gaudi2 chip will also reportedly be banned from export under the new restrictions.
Source Fool.com