An eye-watering $64 billion was wiped from the value of Nvidia Corp (NASDAQ:NVDA, ETR:NVD) after the Biden administration introduced stricter export controls on advanced artificial intelligence chips.
The new rules aim to limit the flow of AI chips, such as Nvidia’s GPUs, to countries deemed adversaries, including China, North Korea, and Russia.
The restrictions cap the number of GPUs that can be exported to most nations without a special licence, though smaller orders under 1,700 chips are exempt. US allies like the UK and Taiwan face no restrictions, but neutral countries, including Switzerland and Israel, are subject to new limits.
Nvidia criticised the rules, calling them rushed and detrimental to competition. Despite the hit to its stock, analysts remain cautiously optimistic, noting potential risks to Nvidia’s data centre chip sales, which drive its revenue.
After hours, the stock was down 2%, valuing the business at $3.26 trillion.