Reuters
Nvidia shares drop to five-month-low after report of canceled China orders
Shares of Nvidia Corp dropped by nearly 5% to a nearly five-month-low on Tuesday following a report that the artificial intelligence (AI) giant may be forced to cancel up to $5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions. Nvidia was notified last week that AI chip orders scheduled for delivery next year to major Chinese technology companies, including Alibaba Group, TikTok owner-ByteDance and Baidu, are subject to the latest export restrictions announced by the U.S. Commerce Department, according to a Wall Street Journal report citing people familiar with the matter. Nvidia’s stock fell to as low as $392.30, down 4.7%, to the lowest level since mid-June.