The Biden administration's proposed "Export Control Framework for Artificial Intelligence Diffusion" has created waves in the tech sector, particularly affecting Nvidia (NVDA). The framework aims to limit the export of AI technologies and GPUs to countries not considered "trusted" by the US, citing national security concerns. This has led to significant backlash from industry leaders who fear that such restrictions could stifle innovation and inadvertently benefit Chinese competitors. The policy introduces stringent licensing requirements and export caps based on computing power, raising concerns about potential disruptions to GPU supply chains and increased operational costs for companies like Nvidia.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) experienced a decline, dropping 2.12% to $70.19 as of 5:40 PM on Wednesday, January 8.