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 enhance national security, targeting countries not considered "trusted" by the US. This has led to significant backlash from industry leaders who fear that such restrictions could stifle innovation and inadvertently benefit China's technological advancements. Concerns are mounting that the framework could shrink the global chip market for US firms by 80%, potentially ceding market leadership to Chinese competitors. The policy's stringent licensing requirements and export caps based on computing power have raised alarms about potential disruptions to GPU supply chains and increased operational costs.
The ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) experienced a decline, dropping 2.18% to $14.80 as of 5:40 PM on Wednesday, January 8.