NVIDIA shares plunge
Global tech giant NVIDIA's shares took a massive plunge on October 17, marking the company's largest single-day drop since December last year, with a decline of 7.2%. The news came as a result of updates to export control regulations for artificial intelligence (AI) chips by the Biden administration. The new rules are aimed at preventing companies like NVIDIA from exporting advanced AI chips to China.
The US government's move is expected to have significant implications on NVIDIA's business in China, with the company's popular A800 and H800 chips now subject to export restrictions. According to a Weibo netizen, "Even H800 doesn't sell it anymore. How afraid are you?" The comment reflects a sense of uncertainty among Chinese consumers about the future availability of NVIDIA products in their country.
As per the latest rules, the export restrictions apply to all chips from NVIDIA, causing panic among both customers and investors alike. While some netizens are supportive of the move, others have expressed concern over the potential impact on the domestic tech industry. One user wrote, "Favourable domestic replacement is beneficial."
The Biden administration's decision has sparked various reactions on Weibo. Some users are celebrating the decline in NVIDIA's stock price, with one netizen stating, "Haha, even if RTX 4090 falls again it will still cost over 1w, when it truly falls to 5k I can purchase one." Others, however, have expressed concern about the implications of this move on China's technology sector. A user commented, "Abandon illusions and pursue independence, this is the only path, Huawei's chip breakthrough is the best proof, domestic AI large models, photolithography machine, refueling!"
The news has coincided with a volatile day in the US stock market, as indicated by the drop in shares of both NVIDIA and other tech companies such as Intel. One user on Weibo shared an update, stating, "Farmers, tonight the US stock market dipped and returned to growth. The A50 futures index turned red in mid-afternoon with a gain of nearly 8%. It has V back by half. One score before going to bed, bad luck disappears, good night!"
In conclusion, the Biden administration's move to restrict export of advanced AI chips from companies like NVIDIA is expected to have far-reaching implications for both China and the United States. While some Chinese netizens are optimistic about the potential benefits of domestic replacement, others worry about the impact on their ability to access cutting-edge technology. As the global tech industry continues to evolve, it will be crucial to monitor these developments closely.