Nvidia's stock is under pressure following reports that the Biden administration plans to impose additional restrictions on the export of artificial intelligence chips. The new regulations, expected to be announced soon, aim to limit AI chip exports to certain countries, including Russia and China, while allowing more access to U.S. allies. This move is seen as a final effort to prevent advanced technologies from reaching nations deemed a security risk. Nvidia, a major player in the AI chip market, could face significant impacts on its international sales, contributing to the stock's decline.
Adding to the negative sentiment, Nvidia's CEO, Jensen Huang, recently downplayed the near-term potential of quantum computing, causing a ripple effect across related tech stocks. This statement has led to a broader sell-off in the tech sector, further weighing on Nvidia's stock. Additionally, U.S. equity futures have edged lower, influenced by Nvidia's post-market decline and broader market concerns, including geopolitical tensions and economic data from Asia.
The ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) is currently trading at $14.79, down 2.25% from the previous close.