Intel Corporation (NASDAQ:INTC) has reportedly informed its Chinese clients last week that it will now require a license to export certain advanced artificial intelligence processors.
What Happened: The new restriction applies to chips with a total DRAM bandwidth of 1,400 gigabytes per second or more, or an I/O bandwidth of 1,100 GB per second, reported Financial Times.
The Gaudi series from Intel, similar to Nvidia Corporation’s (NASDAQ:NVDA) H20 processor, exceeds these thresholds and will be affected by the new rules.
The move comes a day after Nvidia warned it could face a $5.5 billion hit from similar export restrictions imposed by the U.S. government.
In response, China hit back over the weekend with retaliatory tariffs of up to 125% on U.S. goods.
Meanwhile, ASML Holdings (NASDAQ:ASML) released its first-quarter earnings on Wednesday, cautioning that rising tariffs have added uncertainty to its outlook, potentially contributing to broader market weakness.
Price Action: Intel's shares fell by 3.12% on Wednesday, continuing a downward trend that has seen its stock drop nearly 47% in the past year. Year-to-date, Intel is down by 4.9%, according to data from Benzinga Pro.
AMD shares dropped 7.35% on Wednesday, while ASML and Nvidia fell 7.06% and 6.87%, respectively, reflecting broader pressure on the semiconductor sector.
Intel currently holds a growth score of 3.51%, according to Benzinga Edge Stock Rankings. Click here to see how it compares with Nvidia, ASML, AMD, and other major players in the chip industry.
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