Shares of Nvidia Corp. NVDA and Advanced Micro Devices Inc. AMD slumped in the extended session Tuesday following a report that the Biden administration is considering a new ban of sales of AI chips to China. Late Tuesday, the Wall Street Journal reported the Commerce Department could further block sales of AI chips to China without obtaining a special license first. Nvidia shares fell after a 3.1% rise to close at $418.76, and AMD shares fell 2%, after a 2.7% gain in the regular session to close at $110.39. Both Nvidia and AMD have launched new AI chips this year. The ban would follow upon similar actions last year that threatened $400 million in Nvidia sales, but the company found a workaround in supplying a version of products that avoided the ban. At the close, Nvidia shares were up 187% in 2023, and AMD shares were up 70% for the year.
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