The post Will Biden’s new restrictions kill Nvidia stock? appeared on BitcoinEthereumNews.com.

Despite reaching new highs by January 6 – and experiencing an exceptionally well-timed insider sale for the effort – there has been something of a storm brewing for Nvidia (NASDAQ: NVDA) stock in early 2025. On Monday, January 13, NVDA shares threatened to plunge below $130 as uncertainty mounted surrounding the Biden administration’s latest plans to impose new restrictions on the export of advanced artificial intelligence (AI) chips. Though the unveiling of the details about the new rules did not prevent an extended session recovery, they might, in the long run, prove especially damaging for the semiconductor giant. NVDA stock YTD price chart. Source: Finbold Nvidia fires back against the Biden chip export plan Specifically, the Biden administration is seeking to safeguard America’s national security and ensure its continued technological leadership by limiting international access to highly advanced components. Even before the details became known, Nvidia voiced its vehement opposition to the plan, arguing it would neither ensure security nor safeguard technological leadership but that it would instead both be damaging to the chipmaker and to the standing of the U.S. Interestingly, the semiconductor giant pointed out that many of the components that would be restricted are already widely available through gaming and other consumer chips, raising concerns about the Biden administration’s actual strategy but also about the nature of the hardware Nvidia is commercially selling. Why Biden’s new chip export restriction could lead to NVDA stock bloodbath The chipmaker’s reaction, once its business is examined, appears well-founded. Indeed, more than half of the company revenue comes from customers outside the U.S., and as much as 17% is raised in the Chinese market. Considering that only 18 countries would not see their access restricted – though additional non-adversarial nations would be permitted to request access – Nvidia’s revenue could take…

---

Filed under: News - @ January 14, 2025 4:24 pm