NVIDIA chip stocks rise on reports of China easing sanctions – AppliedMatt (NASDAQ:AMAT), Advanced Micro Devices (NASDAQ:AMD)

Nvidia Inc. NVDA Stocks rose on Friday after reports that the U.S. government plans to announce additional sanctions on exports of semiconductor equipment and AI memory chips to China. The sanctions will be less severe than before.

Additionally, the U.S. embargo will focus on Chinese companies that make semiconductor manufacturing equipment rather than manufacturing facilities, following protests from Lam Research Corporation. LRCXApplied Materials Co., Ltd. AmatKLA Corp. KLAC The move will help the U.S. company maintain an edge over international rivals like ASML Holding NV. ASML Tokyo Electron Ltd. tory China has not fully responded to US sanctions against China.

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The United States could announce new semiconductor sanctions by next week, Bloomberg reported, citing people familiar with the matter.

The new restrictions come after months of negotiations between the U.S. government, allies such as Japan and the Netherlands, and U.S. chip equipment makers. U.S. semiconductor companies, including Nvidia and its competitors, had previously asked the government to ease embargoes on China, a major semiconductor market.

Therefore, we expect the U.S. to impose restrictions on fewer Huawei Technologies Company suppliers, limiting it to only two chip factories from Huawei partner Semiconductor Manufacturing International Corporation. I am doing it.

However, the new restrictions will affect high-bandwidth memory chip companies like Samsung Electronics. SSNLFSK Hynix Inc, Micron Technology Inc Mu.

The 2020 pandemic that originated in China disrupted semiconductor supply chains, prompting countries around the world to consolidate their semiconductor bases and reduce their dependence on China. The United States and other countries have started attracting contract chip manufacturers like Taiwan Semiconductor Manufacturing Co. TSM and Intel INTC It offers subsidies to make advanced artificial intelligence chips in U.S. facilities, while insisting that allies such as the Netherlands and Japan impose similar sanctions on China.

VanEck Semiconductor ETF SMH and iShares Semiconductor ETF socksNvidia, and Advanced Micro Devices, Inc. AMDBroadcom Co., Ltd. AVGOQualcomm Inc. QCOMTaiwan Semiconductor, Intel and Micron rose about 1% on Friday.

Price Action: NVDA stock rose 1.04% in pre-market trading to $136.80 at last check on Friday.

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