Collateral Damage: NVIDIA shares drop after Chinese tech firms cancel orders worth $5 billion

News Snapshot:

NVIDIA Corporation experienced a significant decline in its valuation, of approximately 5 per cent, causing its stock to reach a nearly five-month low on Tuesday. This drop followed a report by The Wall Street Journal, indicating that the prominent artificial intelligence (AI) company may be compelled to terminate advanced chip orders to China valued at up to $5 billion. This action is necessary to comply with the recently imposed restrictions by the US government. Last week, NVIDIA received notification regarding the new export restrictions from the US Commerce Department. These regulations now apply to AI chip orders that were originally...