Nvidia stock drops 3% after new US export rules for AI chips

Nvidia's stock fell by 3% after the Biden administration announced new export rules for AI chips. The updated regulations limit most countries to ordering 50,000 GPUs without a special license, while smaller orders are exempt. The new rules aim to prevent smuggling and close loopholes from previous restrictions. Some U.S. allies, including the UK and Taiwan, will not face these limits. Nvidia's vice president criticized the rule for lacking proper review and potentially harming U.S. technological leadership. Nvidia's stock has declined about 9% over the past five sessions, influenced by the new export controls and a lowered price target from HSBC. The Semiconductor Industry Association expressed disappointment over the rushed policy change.