Production at Tesla’s Shanghai Gigafactory could face another supply problem in coming months.
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new chip problem can impact shares of some chip customers, such as
(ticker: NVDA) on Wednesday told investors in a filing with the Securities and Exchange commission that the U.S. government had imposed new licensing requirements on some of its advanced chips. That will impact sales to Russia and China unless Nvidia gets a license to sell fast.
The government “indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia,” read part of the filing.
Nvidia added it doesn’t sell to customers in Russia, but $400 million in third-quarter sales destined for China could be impacted. Wall Street currently projects $5.9 billion in third-quarter sales for the company.
Nvidia added Thursday in another SEC filing the government had allowed development of some chips to move ahead as well as chip sales via Hong Kong through September 2023. Still, concerns will remain for investors regarding Chinese chip sales for the entire industry in coming months.
Nvidia stock dropped 7.7% in Thursday trading while the
rose 0.3%. The
(TSLA) stock was down as much as 3.4% in Thursday trading before rallying late in the day….