Why Nvidia (NVDA) Stock Is Retreating Today

Nvidia (NVDA) is sinking 3% after Bloomberg reported that the U.S. government is looking to tighten the restrictions on AI chips that can be exported to other nations without a license, Bloomberg reported today. Additionally, members of the Trump administration asked two U.S. allies to put additional restrictions on China’s semiconductor sector, according to the news service.

The Trump Administration’s New Moves on Chips

Washington is in the midst of “early conversations” about adding new restrictions on the amount of AI chips that can be sold to other countries without obtaining a license from the U.S. government, unnamed sources said, according to Bloomberg. Additionally, American officials spoke to Japanese and Dutch government representatives in order to convince them to prevent Chinese firms from using chip-making equipment made by Japanese and Dutch companies.

Previously, the administration has discussed putting additional curbs on the type of chips that Nvidia can sell to Chinese firms.

More Information About NVDA

Nvidia is slated to report its fiscal fourth-quarter results after the market closes tomorrow. Analysts on average expect the company to report that its Q4 EPS rose to 85 cents from 52 cents during the same period a year earlier.

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Disclosure: None. This article is originally published at Insider Monkey.