Shares of Nvidia (NVDA.US) lose 3.5% in pre-market today, as the United States on Monday unveiled new export rules on advanced computing chips addressed for artificial intelligence, to facilitate sales to allies with further curb access to China. The US Commerce Secretary Secretary, Raimondo told that "The US leads the world in AI now -- both AI development and AI chip design -- and it's critical that we keep it that way".
Markets remember also that Trump put heavy tariffs on China during his first term. The AI data centre will need to comply with new security parameters in order to be able to import advanced chips. New rules require authorizations for exports, re-exports and even internal transfers. The new rule will start in 120 days from now, and still some changes may be implemented. According to House National Security Advisor Jake Sullivan, the new rule will also curb remote access to AI capabilities.
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Nvidia shares are pressured not only by new export curbs, but also broader Nasdaq sell-off, climbing treasuries yields and US dollar. As for now, NVDA loses 10% from ATH.
Source: xStation5
