Nvidia, other semiconductor stocks pare losses amid new China export rules
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Nvidia (NASDAQ:NVDA) and other semiconductor stocks pared losses on Tuesday amid fresh rules curbing the sale of artificial intelligence-linked chips to China. 
Shares of the Jensen Huang-led Nvidia (NVDA) fell 3% in mid-day trading but they had been down as much as 8% earlier in the session.
AMD (AMD), Qualcomm (QCOM), Broadcom (AVGO), Micron Technology (MU), Texas Instruments (TXN), ON Semiconductor (ON) and Microchip Technology (MCHP) were among the other semiconductor stocks that rebounded.
New restrictions from the U.S. Commerce Department will target Nvidia's A800 and H800 chips, which were targeted at the Chinese market to comply with previous export controls from the Biden administration. However, the company told Seeking Alpha on Tuesday it does not expect a meaningful impact on its financial results in the near-term from the new curbs.
Ming-Chi Kuo, an analyst at TF International Securities, said the new rules were bad for Nvidia (NVDA) and results should be closely monitored to see if the company can compensate those lost sales.
âThe new ban undoubtedly negatively impacts Nvidia, given the robust demand for AI chips from Chinese customers (accounting for 15â20% of AI chip (CoWoS) shipments in 2024),â Kuo wrote in a note. 
The analyst also noted that this makes for a short-term entry opportunity into AMD (AMD) if shares fall. Intel (INTC) stands to lose out because of the new guidelines, Kuo said.
Fresh guidelines
The U.S. unveiled initial restrictions on semiconductors and equipment in October 2022. The new rules require that companies notify the U.S. government before selling certain chips that could be used in artificial intelligence and supercomputing and pose a national security risk, according to a senior administration official.
The updated restrictions allow the sale of advanced commercial chips to Chinese companies for use in consumer products such as smartphones, computers and electric vehicles. 
The U.S. will also require that companies get a license to sell chips to more than 40 countries which Chinese companies could use as intermediaries to get around the controls.

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