The value of Nvidia’s shares decreased by about 5%, and this drop made the company’s stock reach its lowest level in the last five months. The sharp fall in the value of the green team’s shares happened after the Wall Street Journal’s report; A report suggested that the company may have to cancel orders from Chinese tech giants for advanced chips worth $5 billion.
Nvidia shares fell 4.7% to $392.30 per share, the lowest since mid-June. The interesting point is that the value of this company’s shares was one of the main reasons for the 22% growth of the Nasdaq index this year.
Nvidia shares are currently down about 20% from their high of $493.55 on August 31st. Market experts and investors have carefully monitored the market situation; Because the consequences of US export restrictions against China have sent a big shock to the entire world’s technology industry.
Last week, Nvidia received a notice stating that orders from major Chinese companies such as ByteDance, Baidu and Alibaba for artificial intelligence chips will now be subject to the latest US export restrictions.
The recent restrictions have immediate and tangible consequences for Nvidia’s business. The company had completed deliveries of its advanced artificial intelligence processor to China this year and had also tried to accelerate orders for 2024 before new export rules took effect in mid-November.