The move follows a $5.5 billion blow to rival Nvidia and casts fresh uncertainty over the global AI chip market.
According to a report by the Financial Times, the announcement comes just one day after Nvidia warned investors of a $5.5 billion impact from tightened U.S. export controls on its China-tailored AI processors.
The new rules reportedly apply to Intel chips that exceed a total DRAM bandwidth of 1,400 GB per second, I/O bandwidth of 1,100 GB per second, or a combined total of 1,700 GB per second. Products in Intel’s Gaudi series and Nvidia’s H20 chips fall well beyond these specifications, the report noted.
Intel, under the leadership of new CEO Lip-Bu Tan, did not immediately respond to requests for comment. The company’s shares fell over 3% on Wednesday, echoing a broader downturn in chip stocks following the regulatory updates.
Earlier the same day, Dutch chip machinery leader ASML also raised doubts about its business outlook amid the increasingly complex U.S.-China trade tensions.
The news underscores growing turbulence in the AI chip market, which had enjoyed a powerful two-year rally. Now, fresh export hurdles and concerns over tech spending are putting that momentum at risk.
