Nvidia gaps down on market open on report of new ban of AI chips to China
Source: www.tradingview.com
Nvidia has gapped down on its open today following a report that the Biden administration may be considering a new ban on AI chips to China. The stock closed at 418.70 yesterday and opened on the cash market today at 406.60.
Nvidia and other chip makers are likely to find themselves caught in the middle of escalating trade tensions between the US and China that could cost them millions of dollars. These companies play a pivotal role in AI technology and there are US concerns over this type of technology in the hands of China.
The report suggests that the Commerce Department may stop shipments from Nivida and other chipmakers to China as soon as July. This expands on restriction imposed by the Biden administration last October that saw Nvidia produce lower performance chips to export to China. However, the new restrictions would ban these too.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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