NEW YORK, Oct 31 Reuters Shares of Nvidia Corp dropped by about 5 to a near fivemonth low on Tuesday following a Wall Street Journal report that the artificial intelligence AI giant may be forced to cancel up to 5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions.

Nvidia was notified last week that AI chip orders scheduled for delivery next year to major Chinese technology companies, including Alibaba Group, TikTok ownerByteDance and Baidu, are subject to the latest export restrictions announced by the U.S. Commerce Department, the Wall Street Journal reported, citing people familiar with the matter.

Nvidia39;s stock fell to as low as 392.30, down 4.7, to the lowest level since midJune. The stock, which has been one of the major drivers of this year39;s 22 gain in the Nasdaq index, is now down nearly 20 from its record high close of 493.55 reached on Aug. 31. It was last down 2.09.

The stock is getting oversold, said Tom Plumb, chief executive and lead portfolio manager at Plumb Funds, which has Nvidia as one of its largest holdings.

Previously, Nvidia has said this is not going to have a shortterm impact but it39;s more in the long term. We still expect a pretty strong quarter and think it39;s a great longterm holding, although we are not adding any new positions because of the volatility, Plumb added.

A Nvidia spokesperson said there is high demand for its advanced chips, which often require significant lead time…