New U.S. regulations on AI chip exports causing Nvidia, TSMC, and Micron stocks to drop

From Nasdaq: 2025-01-13 14:28:29

Several AI chip stocks, including Nvidia, TSMC, and Micron, are experiencing sell-offs due to new U.S. regulations limiting the export of advanced chips for AI. This move aims to maintain technological advantages for the U.S. and allies while restricting AI progress for China and other adversarial countries.

Nvidia, Micron, and TSMC are key players in the AI chip space and are facing valuation pullbacks following the announcement of new export restrictions on AI chips and semiconductor manufacturing equipment. The regulations will impact exports to countries like China, Russia, Iran, and North Korea, while U.S. allies will have unrestricted access to advanced semiconductors.

Nvidia leads in GPU design for AI data centers, Micron produces memory solutions, and TSMC dominates the market in manufacturing advanced AI chips. The geopolitical tensions between the U.S. and China pose risks for these companies, especially TSMC, as it is crucial in the AI chip industry and is based in Taiwan.

Geopolitical dynamics, particularly between the U.S. and China, are a significant risk factor for AI chip investors. Tensions could impact the performance of companies like Nvidia, Micron, and TSMC, affecting the AI chip market. The dispute over Taiwan, where TSMC is based, adds complexity to the situation.

Investors are urged not to miss out on potentially lucrative opportunities in AI chip stocks. Analysts are issuing “Double Down” stock alerts for companies they believe are poised for growth. Past returns from investments in companies like Nvidia, Apple, and Netflix show the potential for substantial gains in the AI chip market.



Read more at Nasdaq: Artificial Intelligence (AI) Stocks Today: Why Nvidia, Micron, and TSMC Are Sinking