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US tightens tech sanctions on China sooner than expected

In another step aimed at curbing China’s technological progress, the U.S. Department of Commerce is restricting shipments to China of advanced graphics processing units (GPUs) designed by U.S. companies NVIDIA and AMD. decided. The U.S. government has said it is concerned about potential military uses for these products.

A GPU is a type of integrated circuit used for generating graphics and video images, high-performance computing, and accelerating artificial intelligence (AI) and machine learning. Both NVIDIA and AMD are based in California and are number 9.th and 10th World’s largest semiconductor companies ranked by 2021 revenue.

Shares of both companies plunged NVIDIA on news of the sanctions. After dropping 12% during the day, NVIDIA’s stock closed down 7.7% on Sept. 1. AMD ended trading down his 3.0%. Both stocks fell further in after-hours trading.

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