Nvidia is grappling with potential challenges as the Biden administration's proposed export controls on AI chips have raised alarms within the semiconductor sector. The Export Control Framework for Artificial Intelligence Diffusion seeks to enforce strict regulations on the export of AI processors and GPUs, which could significantly affect Nvidia's operations. Both Nvidia and the Semiconductor Industry Association have voiced concerns, suggesting that these measures might weaken U.S. leadership in semiconductor technology and drive international clients towards alternative solutions. Nvidia's leadership has emphasized that such restrictions could unnecessarily limit global access to essential technologies, potentially impacting the U.S. economy and its technological dominance.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) experienced a decline, falling 3.43% to $75.20 as of 7:00 AM on Thursday, January 23.