Nvidia stock plummeted 2% to close at $133.23 on Monday after the White House announced new export restrictions on artificial intelligence processors. The move, which restricts the sale of AI processors and systems to certain countries and quantities, has been met with criticism from industry officials.
The restrictions are part of an interim final rule titled “Export Control Framework for Artificial Intelligence Diffusion,” which was published by the Biden Administration in its last days in office. Nvidia called the new regulations “misguided” and warned that they threaten to derail innovation and economic growth worldwide.
Industry officials, including representatives from Nvidia rivals Advanced Micro Devices (AMD), Broadcom, and Marvell Technology, have condemned the late regulatory move. The Semiconductor Industry Association (SIA) stated that the new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI.
Ned Finkle, vice president of government affairs at Nvidia, said that the regulation would impose “bureaucratic control” over how American semiconductors are designed and marketed globally. He added that this move would squander America’s hard-won technological advantage.
The new regulations also impact Nvidia rivals, with Broadcom stock falling 1.5% to close at $243.99 on Monday. The SIA warned that the global restrictions and licensing requirements imposed by the new rule would cede strategic markets to competitors.
As President-elect Donald Trump is set to transfer power to President Joe Biden on January 20, industry officials are concerned about the impact of this move on the US technology sector.
Source: https://www.investors.com/news/technology/nvidia-stock-sinks-biden-white-house-ai-export-rules