Why did Nvidia Shares Fall? Will it Affect Artificial Intelligence Altcoins? - COINTURK NEWS
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Why did Nvidia Shares Fall? Will it Affect Artificial Intelligence Altcoins?

2:03 am (50 days ago)
October 18, 2023

Crypto investors are heavily influenced by the movements in the US stock markets. In fact, we witnessed another example of this today. The US stock markets opened negative today with the recent China decision. Nvidia shares fell and artificial intelligence altcoins like FET Coin were also affected.

Why did Nvidia Shares Fall?

The US Department of Commerce has made a new decision to restrict China’s access to American-origin semiconductors. The chip restrictions require them to obtain licenses to send advanced semiconductors to regions where the US has imposed an arms embargo.

The new rules will come into effect within 30 days and products that directly concern consumers such as phones, laptops, and game consoles will be exempt from restrictions. The recent move, which particularly affects exporters operating in the field of artificial intelligence, has caused Nvidia shares to lose more than 7%. Popular artificial intelligence altcoins like FET Coin were also negatively affected during the same minutes.

US Chip Restriction

The new restrictions came after American companies sought ways to bypass export controls discussed by the Biden administration last year. US companies like Nvidia, Intel, and Qualcomm objected, stating that the restrictions would harm the revenues needed to establish factories in the US.

For example, 20-25% of Nvidia’s data center revenues come from China. Chips exported to China, both AI-focused and non-AI-focused, such as A800 and H800, are less powerful than their American counterparts. Jensen Huang, CEO of Nvidia, says that it is currently difficult to predict the effects of the recent restrictions. The shares recovered after falling by 7.5% in the following hours.

The company offers software tools and chips to accelerate artificial intelligence development and is currently among the most valuable companies in the world. Moreover, it was expected to continue its growth in the long term due to the increasing demand for artificial intelligence.

While Yellen and Biden say they will take the necessary steps to improve relations with China, the tension in Taiwan is also heating up. If the restrictions expand and technology giants like Nvidia suffer more losses, this will have a negative impact on cryptocurrencies as well.

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