By Adam Clark
Nvidia stock was falling early Monday as the chip maker pushed back against a last-minute rush by the Biden administration to issue new regulations over artificial-intelligence technology. The company is making an explicit appeal to President-elect Donald Trump to reject such policies.
While Nvidia's most advanced AI chips are already subject to a series of export controls -- concerning China, particularly -- it fears even more restrictive conditions.
"In its last days in office, the Biden Administration seeks to undermine America's leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review. This sweeping overreach would impose bureaucratic control over how America's leading semiconductors, computers, systems, and even software are designed and marketed globally," said Ned Finkle, Nvidia's vice president of government affairs, in a statement.
The Biden administration is expected to unveil stricter curbs on export sales in its final days, according to a Bloomberg report last Wednesday. The regulations could create three tiers of chip controls, it added, citing people familiar with the matter. A top group of U.S. allies would retain full access to U.S. semiconductor technology but most countries would be hit with new restrictions.
The proposed rules have already aroused criticism from the chip industry, with the Semiconductor Industry Association suggesting new policies should be designed by Trump's incoming administration.
Nvidia also looks to be hoping that Trump will prevent the implementation of stricter chip-export curbs.
"Although the rule is not enforceable for 120 days, it is already undercutting U.S. interests. As the First Trump Administration demonstrated, America wins through innovation, competition, and by sharing our technologies with the world -- not by retreating behind a wall of government overreach. We look forward to a return to policies that strengthen American leadership," Finkle said.
Nvidia shares were down 2.9% at $131.94 in premarket trading on Monda, having fallen around 9% in the previous five trading sessions. Technology stocks have been hit by increasing doubts about whether the Federal Reserve will cut interest rates this year following strong U.S. jobs data.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 13, 2025 05:00 ET (10:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.