The dispute between the United States (US) and China continues with the country's leader Unlce Sam imposing a ban on the export of computer chips made by Nvidia Corp and Advanced Micro Devices (AMD) Inc to the Great Wall country.
The matter was confirmed by Nvidia representatives saying that they accepted the new rules to 'protect products from military use in China'.
It follows the tension that occurred when the US representative, Nancy Pelosi stubbornly visited Taiwan despite strong opposition from China.
Please note that Nvidia and AMD chip production plants are located in Taiwan.
According to the US Commerce Department, Nvidia and AMD were ordered to halt any exports of artificial intelligence (AI) computing chips to cripple the Chinese firm's ability to perform everyday tasks such as image recognition.
Previously there were also rumors that AI computer chips, used for image recognition and language processing, were used by the military for intelligence gathering purposes.
In the meantime, the export ban is seen to have an impact on Nvidia's sales this quarter as China has ordered nearly $400 million worth of computer chips from the company.
On the other hand, AMD's spokesperson said the opposite by underlining that the ban will not have a material impact on the company.
It is understood that Nvidia's A100 and H100 chips designed to accelerate machine learning capabilities as well as AMD's MI240 chip have received production suspension licenses.
As of this writing Nvidia shares are down 2.42% while AMD lost 2.38%.
