The Biden administration's proposal for new export curbs on AI chips has raised concerns among industry executives, particularly at Nvidia, which could face limitations on its sales to certain countries. The proposed framework aims to restrict access to advanced AI chips in 120 countries, including Mexico, Portugal, Israel, and Switzerland, while allowing unrestricted sales to about 20 key allies. Nvidia's vice president of external affairs, Ned Finkle, criticized the plan, stating that it would stifle innovation and economic growth without enhancing U.S. security. The framework includes a 120-day comment period, during which the incoming Trump administration could potentially alter the rules.
Nvidia's revenue from China and Hong Kong, which accounted for 15% of its sales last quarter, could be impacted by these restrictions. The company has expressed concerns that the new rules could fragment global supply chains and disadvantage U.S. companies. Despite the potential long-term implications, the immediate revenue impact on Nvidia is expected to be limited, as the framework allows for certain exceptions and thresholds for chip sales.
Nvidia's stock closed at $133.23 on January 13th, down 1.97% from the previous close of $135.91. However, the stock saw a slight recovery after market close, rising 0.71% to $134.175.