Nvidia CEO Jensen Huang is currently in need of a reality check as the AI-backed company's share prices are dropping like crazy and US investors are growing all the more concerned and anxious. Nvidia has given Wall Street investors some superb growth in the last couple of years, and even though the company is planning on taking things to the next level, it looks like the stock market is rebounding on them.
Why are Nvidia stocks tanking?
According to a top tech analyst on Wall Street, this could be majorly because of a big change in AI technology export rules set by the Biden government in recent days. Nvidia's market correction period began nearly as soon as 2025 began and it immediately reported a 10% decline in its stocks.
Which countries have been banned from purchasing Nvidia AI chips?
The outgoing Biden administration's latest decision about AI chip exports to certain countries has now led to major trouble for Nvidia as its chips are currently in great demand across the globe, but the new rules set a certain restriction around the exports. The restrictions would be applicable to Singapore, Israel, Saudi Arabia, and the United Arab Emirates primarily, with an outright ban on sales to countries like Russi ..
As per Commerce Secretary Gina Raimondo. AI development and research are currently being led by the US currently and they government wants to keep things that way. The export restrictions are just to ensure that the US stays the primary leader in AI research and development around the globe.
FAQs:
Is Russia banned from buying Nvidia AI chips?
Yes, according to the new rules by the US government, Nvidia will not be allowed to export its AI chips to Russia.
Will China be able to import Nvidia AI chips?
No, as of the new export rules in place by the Biden government, China is in the banned list of countries where Nvidia will not be allowed to export its AI chips.
Source Name : Economic Times