Nvidia is grappling with potential challenges as the Biden administration's proposed export controls on AI chips have raised significant concerns within the semiconductor industry. The new Export Control Framework for Artificial Intelligence Diffusion aims to impose stringent regulations on the export of AI processors and GPUs, which could severely impact Nvidia's business operations. Both the Semiconductor Industry Association and Nvidia have criticized the framework, arguing that it could undermine U.S. leadership in semiconductor technology and push international customers towards alternative technologies. Nvidia's Vice President of Government Affairs, Ned Finkle, has expressed that these restrictions could unnecessarily limit global access to widely used technologies, potentially harming the U.S. economy and its technological leadership.
The Direxion Daily NVDA Bull 2X Shares (NVDU) experienced a decline, dropping 3.65% to $105.98 at 7:00 AM on Thursday, January 23.