Nvidia stock drops over 4% as US imposes new AI export restrictions

Nvidia's stock dropped over 4% on Monday after the White House announced new export restrictions on artificial intelligence processors. The interim rule aims to enhance national security by limiting where and how many AI processors can be sold. Industry officials criticized the last-minute regulations from the Biden Administration, which is set to transition power to President-elect Donald Trump on January 20. Nvidia called the restrictions "misguided," arguing they could hinder innovation and economic growth. The Semiconductor Industry Association expressed disappointment over the rushed policy change, warning it could harm the U.S. economy and competitiveness in semiconductors and AI. The new rules impose global restrictions and licensing requirements on U.S. exports of AI chips.