Nvidia stock tumbles more than 10% in morning trading.
Nvidia said on Wednesday that U.S. officials told the company to stop exporting two top computing chips for AI work to China.
The ban, which affects its A100 and H100 chips designed to speed up machine learning tasks, could interfere with the development of the H100, the flagship chip the company announced this year.
Nvidia Corp said on Thursday that the U.S. government has allowed exports and in-country transfers needed to develop the company's H100 artificial intelligence chip.
The government has also authorized Nvidia to fulfill orders of the A100 and H100 AI chips via its Hong Kong facility through Sept. 1, 2023.
popular chip ETFs like the VanEck Semiconductor ETF, iShares Semiconductor ETF, SPDR S&P Semiconductor ETF, Invesco Dynamic Semiconductors ETF , and Direxion Daily Semiconductor Bull 3 Shares have all declined.
The semiconductor segment of the market is now the most significant drag on Wall Street on Thursday as the market segment as a whole is lower by 4.1%.
Daily price action: SMH-4.1%, SOXX-4.2%, XSD-5.5%, PSI-4.7%, SOXL-12.6%, NVDA-10.6%, and AMD-6.5%.
Year-to-date price action: SMH-34.8%, SOXX-35.9%, XSD-34.9%, PSI37.5%, SOXL-83.1%, NVDA-55.2%, and AMD-47.2%.