Nvidia Faces Export Restrictions Amid Global AI Chip Debate
Targeting artificial intelligence microchips, the Biden government is proposing new export restrictions that may have a big effect on Advanced Micro Devices (AMD, Financials) and Nvidia (NVDA, Financials). Expected to divide nations into three levels depending on their access to sophisticated U.S. chip technology, the proposed rules are meant to restrict sales to numerous world marketplaces. Already, Nvidia has had restrictions on AI chip sales to China and Russia, which together represent for a meager share of its worldwide revenue.
With an eye on national security, the new approach seeks to protect U.S. technical superiority. Warning that the proposed limits might compromise America's competitive advantage in the global AI race and slow down economic development, Nvidia has rejected them. After the news, after-hours trading saw Nvidia's shares drop almost 1%.
Separately, at the CES 2025 tech conference, Nvidia CEO Jensen Huang displayed fresh artificial intelligence devices including a $3,000 personal AI computer run on the Blackwell chip. Though with advances, Nvidia's stock dropped more than 6%, suggesting market worries about the wider consequences of export restrictions and the competitiveness of artificial intelligence sectors.
