US Weighs Capping Exports of AI Chips From Nvidia and AMD to Some Countries

Published On Oct 14, 2024, 8:46 PM

The Biden administration is considering imposing caps on the export of advanced AI chips from companies like Nvidia and AMD to certain countries, particularly in the Persian Gulf region. This potential policy aims to enhance national security by limiting the abilities of specific nations to develop AI technology and could be an extension of existing restrictions originally targeted at China. The discussions are still in preliminary stages and may impact US diplomatic relations, especially with countries that have increasing demand for AI capabilities.

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Stock Forecasts

NVDAView NVDA chart on TradingView

Negative

Investor sentiment towards Nvidia may be negatively affected in the short term due to uncertainty surrounding export restrictions. However, Nvidia's strong position and demand in AI markets suggest a longer-term positive potential once any regulatory matters settle.

AMDView AMD chart on TradingView

Negative

AMD may also see a negative impact from these potential restrictions. Similar to Nvidia, AMD's position in the market may drive long-term growth, but the immediate reaction could lead to volatility as investors assess the implications of the export caps.

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