Nvidia stock falls after Biden administration releases updated export rule for AI chips
Published On Jan 13, 2025, 3:38 PM
Nvidia's stock fell nearly 3% following new export regulations from the Biden administration aimed at controlling the export of AI chips to adversaries like China. The updated rules cap the amount of advanced AI GPUs that can be ordered without a special license, potentially complicating Nvidia's sales, especially to non-allied nations. Analysts suggest that while Nvidia may continue to thrive, this regulation introduces risks to its revenue due to limitations on GPU shipments, with the stock already experiencing a roughly 9% drop over recent trading days.
Stock Forecasts
NVDA
Negative
The new export rules may significantly limit Nvidia's ability to sell its more advanced AI chips in international markets, particularly to nations that pose competitive risks. This regulatory environment has created uncertainty around future sales volumes and revenues, impacting investor sentiment negatively towards Nvidia.
Related News
US clamps down on AI chip export drawing pushback
Jan 13, 2025, 1:44 PM
The new rules are intended to make sure the "the world's AI runs on American rails", and stays out of the hands of "malicious actors", say officials.
Stock market today: Dow pops higher, Nasdaq and S&P 500 slide amid rate-cut fears
Jan 13, 2025, 1:25 PM
Stocks are under pressure as strong data craters bets on the chances of Fed rate cuts.
Stock market today: Dow revives as Nasdaq, S&P 500 slide amid rate-cut fears
Jan 13, 2025, 9:46 AM
Stocks are under pressure as strong data craters bets on the chances of Fed rate cuts.