Nvidia, the leading manufacturer of AI chips, has criticized the Biden administration's last-minute plan to impose new export limits on AI chips, arguing that the move could threaten economic growth and U.S. leadership. The company's stock slipped more than 1% after markets closed on Wednesday following the report of the Biden administration's plan.

The Biden administration is reportedly planning to announce new regulations as soon as Friday to further limit the export of AI chips by companies like Nvidia. The plan involves creating three tiers of chip curbs, with U.S. allies getting unlimited access, adversaries blocked, and most countries facing restrictions on total computing power.

Nvidia has objected to the proposal, stating that a last-minute rule restricting exports to most of the world would not reduce the risk of misuse but would threaten economic growth and U.S. leadership. The company's shares slipped more than 1% after markets closed on Wednesday following the report.



The new regulations could limit the export of AI chips to most of the world, which might negatively impact U.S. companies like Nvidia and AMD. Nvidia has seen its stock price slip after the report, indicating potential concerns about the new restrictions. Nvidia's stock closed lower by 0.02% at $140.11 Wednesday.



The new regulations could lead to a shift in Nvidia's global market share, with potential gains in U.S. ally markets and losses in adversary and restricted markets. This could also impact Nvidia's valuation, as a significant portion of its market capitalization is tied to its global market share and growth potential.

The Biden administration's chip export limits could have significant economic and geopolitical consequences on the global semiconductor industry. While the new restrictions could strengthen U.S. influence and leadership in shaping global AI development, they could also exacerbate geopolitical tensions, particularly with China and Russia. The new restrictions could accelerate efforts by these countries to develop their own semiconductor technologies, aiming for technological sovereignty and reducing dependence on U.S. technology.

In conclusion, Nvidia's criticism of the Biden administration's chip export limits could have both short-term and long-term impacts on its stock performance. In the short term, investors may be cautious about the company's prospects, leading to a decline in its stock price. In the long term, Nvidia's ability to adapt and innovate will be crucial in determining its stock performance. The new regulations could also have significant economic and geopolitical consequences on the global semiconductor industry, with potential impacts on U.S. companies, global supply chains, AI chip demand, U.S. influence, geopolitical tensions, alliances, and technological sovereignty.