CNBC's Kristina Partsinevelos reports on the international roadblocks facing Nvidia and Applied Materials.

U.S. chip companies Nvidia and Applied Materials are encountering significant international obstacles. Applied Materials reported a $710 million revenue impact from new U.S. export restrictions, which close loopholes previously used to sell to certain Chinese entities. While the hit represents less than 2% of quarterly revenue, it underscores ongoing market share concerns and valuation pressures compared to peers.

Meanwhile, a multibillion-dollar deal for Nvidia to supply AI chips to the United Arab Emirates remains stalled, with U.S. officials pressing the UAE to fulfill promised investments before chip deliveries proceed. These developments illustrate the ongoing influence of government policy on the global semiconductor industry and the uncertainty surrounding large-scale international agreements.

The international roadblocks facing Nvidia, Applied Materials

Two chip companies today facing some international roadblocks. For that, we're going to turn to Cristina Parzenevalos. Really interesting mix of business and policy here on both of these examples. KP. Yeah, these two chip stores really highlight how complicated it is for United States, just in terms of the companies to sell chips abroad, I should say. Let's first focus on Applied Materials, because those shares are down about 2% after disclosing a $710 million revenue hit from new U.S. export rules. Lamb Research, KLA likely have exposure as well, but haven't disclosed any numbers yet. Also why some of those stocks are lower. But the new rule closes what we call maybe a workaround or anything, but the industry that has been using selling to Chinese entities that weren't explicitly named on the entity list, even when majority owned by sanctioned companies. So that is changing. Applied Materials has lower China exposure than its peers at around 27% of revenue, but already trades at roughly a 25% valuation discount to Lamb and KLA due to market share worries. Bernstein in a note this morning calls this quote, annoying, but incremental. The hit is less than 2% of Q4 revenue. Same thing for fiscal 2026. Morgan Stanley says the real story is really memory CapEx recovery that we are starting to see as well as Taiwan Semi continuing to spend. And that means that they need to buy equipment. But on the flip side now, that other story, while the U.S. is restricting chip equipment to China, a major deal to send NVIDIA AI chips to the U.S. ally is also stuck. The multibillion dollar UAE deal that we've talked about a lot, signed in May, is stalled. Nearly five months later, according to The Wall Street Journal, the UAE promised to invest in the U.S. in exchange for hundreds of thousands of NVIDIA chips. But the investment so far hasn't materialized. This is a rumor that we've been hearing for quite some time. Commerce Secretary Howard Lutnick is pressuring the Emiratis to finalize their U.S. investments before authorizing chip delivery. This delay was largely expected, which is why you really aren't seeing NVIDIA shares reacting negatively. Keep in mind that all the sovereign AI demand really isn't factored into a lot of these earnings estimates as well. But it is a reminder that headline billion dollar spending promises aren't always set in stone, guys.

Sarah Mullally has been named as the first female Archbishop of Canterbury in the 1,400-year history of the role, but her appointment immediately drew criticism from conservative Anglicans mainly based in Africa who oppose women bishops.

Canterbury

Church of England names first female archbishop

Israeli forces have intercepted the last vessel of an aid flotilla headed for Gaza. The convoy was in international waters, prompting accusations that Israel violated maritime law. Protests have been staged in cities around the world.

Middle East Conflict

Israel's interception of Gaza aid flotilla prompts protests

U.S. President Donald Trump said that he is issuing a Sunday evening deadline for Hamas to agree to a U.S. peace proposal, backed by the Israeli government, to end the war in Gaza.

Washington

Trump issues deadline for Hamas to reach ceasefire deal

Prince William opened up on comedian Eugene Levy's Apple travel show, "The Reluctant Traveler," about his wife Kate, his mother, Princess Diana, and changes to the monarchy when he becomes king.

London

Prince William opens up about family, future plans for monarchy

The White House says the first round of mass layoffs resulting from the government shutdown could be announced on Friday. CBS News' Nancy Cordes reports.

Government shutdown mass layoffs could begin today, White House says

One of the two people who died during the Manchester synagogue attack on Thursday was possibly struck by police gunfire, authorities say. CBS News' Imtiaz Tyab reports.

Manchester

One victim likely killed by police during Manchester synagogue attack

Russian President Vladimir Putin spoke at the Valdai Discussion Club in Sochi, Russia on Thursday (October 2). He fired back at U.S. President Donald Trump's remark calling Russia a "paper tiger", suggesting NATO might be one instead. Putin also warned that if the United States supplied Tomahawk missiles to Ukraine it would trigger a dangerous new escalation.

Sochi

Putin warns U.S. Tomahawk supply to Ukraine would trigger escalation

Ukraine and Russia have carried out another exchange of prisoners of war. About two hundred Ukrainian prisoners released by Russia have arrived in the Chernihiv region near Ukraine’s border with Belarus.

Chernihiv

Ukraine Invasion

Russia, Ukraine exchange 185 prisoners of war in latest swap

Two Jewish men were killed and three other men were seriously injured in a terror attack outside a synagogue in the northern English city of Manchester, authorities said.

Two killed in U.K. terror attack outside synagogue on Yom Kippur

President Trump has declared the U.S. is in an "armed conflict" with drug cartels as the White House calls drug runners "unlawful combatants."

Trump declares U.S. in 'armed conflict' with drug cartels

The head of the Dwight D. Eisenhower Presidential Presidential Library has resigned after sources say he resisted a request from the Trump administration to give a sword from the library's collection to King Charles.

Abilene

Eisenhower library head resigns

Two regional jets crashed into each other on the tarmac at New York's LaGuardia Airport when the wing of one aircraft hit the front end of another. One flight attendant was injured.

LaGuardia Airport

Two regional jets collide on tarmac at New York's LaGuardia Airport

Blame was thrown around by all sides on the first day of the shutdown after the White House and Congress failed to agree on a way to keep the U.S. government funded and open. The White House said layoffs to the federal workforce were ‘imminent.’

White House says federal worker layoffs ‘imminent’ after shutdown

Jane Goodall, the British conservationist and researcher renowned for her work with chimpanzees, has died at age 91. The Jane Goodall Institute confirmed her death on Instagram Wednesday, saying she died of natural causes.

Los Angeles

Jane Goodall, chimpanzee researcher and conservationist, dies at 91

U.S. President Donald Trump has signed an executive order, promising military action if necessary, to defend Qatar in the face of any future attack. It follows an Israeli strike on Doha last month, targeting a Hamas negotiating team. Qatar called the attack a violation of its sovereignty, prompting Trump to issue the new security assurances to the Gulf nation.

Doha

Trump signs executive order protecting Qatar after Israeli strike

The Israeli military is pressing on with its offensive in Gaza, launching strikes across the territory, as Hamas weighs up its response to the U.S. peace proposal. Debora Patta reports.

Jerusalem

Israel continues Gaza offensive as Hamas weighs U.S. peace deal

The Supreme Court has added another blockbuster case to its new term of cases. The court announced it would hear whether President Trump can legally fire Federal Reserve Governor Lisa Cook. Jessica Levinson has more.

Supreme Court to weigh Trump firing of Fed's Lisa Cook

Flash floods in Ukraine's Odesa killed at least nine people, including a family of five trapped in their home as it was engulfed by water, emergency services said on Wednesday (October 1), as torrential rain left hundreds in need of rescue and thousands without power.

Odesa Oblast

Deadly flash floods hit Odesa after downpours in Ukraine's south

Parts of the U.S. government remain closed after Senate votes failed to pass funding. A GOP-backed House bill fell short of the 60-vote threshold, leaving 750,000 federal workers facing furloughs and possible military pay delays.

Government shutdown continues after Senate votes down resolutions

In Afghanistan, concerns are growing after days of virtually no internet connectivity. The blackout has disrupted banking, commerce and aviation. The Taliban denies banning internet services.

Kabul

Afghanistan imposes internet blackout

U.S. President Donald Trump said on Tuesday that Hamas militants have about three or four days to respond to his Gaza peace plan proposal or face the consequences. But Gazans saw little hope in the plan, which was presented to Hamas after Israel had endorsed it as satisfying its war aims.

Hamas under pressure as Trump issues deadline on Gaza peace plan

U.S. President Donald Trump threatened to use 'dangerous' U.S. cities as training grounds for the military at a rare meeting of top military officials where he and U.S. Defense Secretary Pete Hegseth took aim at what they called 'woke' military standards.

Trump threatens to train military in U.S. cities

At least 69 people were killed after a 6.9-magnitude earthquake shook the coastal city of Bogo and outlying rural towns in Cebu province in the Philippines, officials said. CBS News foreign correspondent Anna Coren has the latest details.

Cebu

Dozens killed after 6.9-magnitude earthquake shakes Philippines

U.S. President Donald Trump and lawmakers failed to reach a funding deal, causing the government to shut down Wednesday. Tens of thousands of federal workers will be told to stay home – furloughed without pay.

U.S. government shuts down after lawmakers fail to reach funding deal

U.S. President Donald Trump is amping up pressure on Hamas to respond to his 20-point peace plan to end the war in Gaza. He says he wants a response in a matter of days or there will be a ‘very sad end’ to the conflict.

Trump puts pressure on Hamas with deadline on Gaza peace plan

U.S. Defence Secretary Pete Hegseth said there would be no more ‘overbearing rules of engagement’ for the U.S. military while President Donald Trump threatened war on ‘the enemy from within’ at a gathering of top U.S. military commanders.

Hegseth calls for end to ‘politically correct’ U.S. military leadership

European leaders, from Ursula von der Leyen to Emmanuel Macron, have reacted positively to U.S. President Donald Trump's plan to end the war in Gaza.

EU leaders urge Hamas to accept Trump's Gaza plan 'without delay'

Military leaders have been summoned to Quantico Marine Corps base from all around the world by Defense Secretary Hegseth for a rare, in-person meeting. Democratic lawmakers have raised safety concerns about the military leaders leaving their posts for the well-publicized meeting.

Quantico

Hegseth gathers U.S. military leaders for rare, in-person meeting

Imelda is now a Category 1 hurricane, threatening dangerous weather conditions on the East Coast alongside Hurricane Humberto. CBS News' Rob Marciano has more details.

Folly Beach

Imelda becomes hurricane, threatens dangerous conditions on East Coast

Venezuelan President Nicolas Maduro said Monday he is ready to declare a state of emergency over the threat of U.S. "aggression," following a spate of deadly U.S. strikes on suspected Venezuelan drug boats.

Breakdown