Nvidia's 'AI Chip Export Control' Hit..."China sales account for 17%"

New export controls for advanced artificial intelligence, AI chips announced by the U.S. administration of Joe Biden will hurt industry leader Nvidia, analysts said.

Local analysts in the U.S. pointed out that Nvidia makes more than half of its sales outside the U.S., with China accounting for about 17%.

It noted that the new restrictions could limit the Nvidia market and dampen revenue potential, as about half of Nvidia's chips are sold to export-restricted countries.

Earlier on the 13th local time, the Biden administration announced new export controls that would sell semiconductors needed for AI development to allies such as South Korea without restrictions and set limits for most other countries.

The move is interpreted as a paving the way for China to cut off "by turns" such as creating data centers in third countries such as Southeast Asia or importing U.S.-made AI semiconductors owned by third countries.