Investing.com – Nvidia (NASDAQ:) shares fell in premarket trading on Friday following a report that new restrictions on chip exports from the United States could soon be announced.
Changes made by the outgoing Biden administration will cap sales of U.S. chips optimized for artificial intelligence at both the country and company level, effectively limiting chip exports to much of the world, Bloomberg News reported.
The updated rules could be unveiled as early as Friday, Bloomberg News reported, adding that the changes would create three tiers of restrictions on the use of chips. Citing sources familiar with the matter, the news service noted that while some U.S. allies will still have full access to U.S. semiconductors, there will be new limits on the total computing power that can be shared with one country for the vast majority of the world. .
If the changes are unveiled, they would come just two weeks before President-elect Donald Trump is set to replace Biden in the White House.
In an emailed statement and quoted by multiple media sources, Nvidia Vice President Ned Finkle said Biden should not “preempt the incoming President Trump” with policy changes. Finkle said it would “harm the US economy, set America back and play into the hands of US adversaries.”
“The emergency cap policy will affect core computing in countries around the world, doing nothing to enhance national security, but rather pushing the world toward alternative technologies,” Finkle said, according to media reports. Finkle warned that the move would leave the Biden administration “with a legacy that will be criticized by American industry and the global community.”
As a seller of processors that help power data centers and develop advanced artificial intelligence models, Nvidia has led the surge in enthusiasm around AI applications.
The White House and the US Commerce Department did not immediately respond to requests for comment, Reuters reported.
(Reuters contributed reporting.)