The Biden administration is preparing to implement stricter export restrictions on advanced AI chips from Nvidia (NVDA) and Advanced Micro Devices (AMD), a move that is set to take effect before President-elect Donald Trump’s inauguration on January 20.
According to a Bloomberg report, the new measures will further limit access to high-performance chips, primarily targeting countries and companies that pose security concerns, while granting access to a select group of close allies, including Japan, Europe, and Australia.
The US is tightening controls to prevent advanced AI technology from reaching nations such as China and Russia, with new restrictions also extending to Southeast Asian and Persian Gulf countries. This policy is designed to prevent these chips from being used by adversaries like Beijing and Moscow, ensuring that sensitive technologies do not fall into the wrong hands.
The Biden administration is expected to announce the new curbs as soon as Friday, with some market analysts speculating that the changes may affect stock prices. Nvidia’s stock saw a slight decline of 1% in late trading, dropping below its 50-day moving average, while AMD’s stock edged lower after hours following a 4.3% decline during regular trading. Other companies involved in AI, such as Broadcom (AVGO) and Taiwan Semiconductor (TSM), also experienced minor losses.
Investor’s Business Daily contributed to this report.
