Nvidia Shares Fall on New AI Chip Export Rules. Is This a Golden Opportunity to Buy the Stock?

Nvidia (NASDAQ: NVDA) shares came under pressure recently after the Biden administration imposed tougher guidelines regarding the export of artificial intelligence (AI) chips. Under the new rules, most countries would be capped on the amount of advanced AI chips, such as Nvidia's graphic processing units (GPUs), they can purchase.Based on this Interim Final Rule on Artificial Intelligence Diffusion, 18 countries face no restrictions and will not be required to get a license to buy GPUs, but 24 countries are banned outright. Most countries will need to get a license to import more than 1,700 GPUs. They could then purchase up to 50,000 GPUs, or up to 100,000 if certain requirements are met. Some nations, meanwhile, will be allowed to purchase up to 320,000 GPUs over a two-year period. Nvidia blasted the rule, saying it was done in secret under the guise of an "anti-China" measure, and the company argued it would only weaken U.S. global competitiveness, threaten innovation, and harm economic growth. At the same time, the company appealed to the incoming Trump administration, saying the first Trump administration helped lay the foundation that led to the strength the U.S. sees in AI today. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool