The AI chip giant NVIDIA saw its stock plummet by over 4%, losing its position as the world’s most valuable company by market capitalization. The decline comes amid heightened concerns over impending U.S. export controls on China, weighing heavily on the tech sector.
On Monday, Reuters reported that NVIDIA’s shares closed at $136.02, tumbling 4.18% from the previous session. This marks the first dip below the $140 threshold in nearly three weeks. The company’s market value shrank to $3.331 trillion, surrendering the top spot to Apple, now valued at $3.520 trillion.
The Biden administration is poised to unveil new export restrictions targeting China. According to the U.S. Chamber of Commerce to its members, the impending regulations could blacklist up to 200 Chinese semiconductor firms. This move would effectively bar most U.S. suppliers from doing business with these newly restricted companies. The Commerce Department is expected to roll out these measures before Thanksgiving on November 28.
In a related move, the White House plans to introduce additional regulations next month as part of its broader AI strategy. These rules aim to limit exports of high-bandwidth memory chips to China, further tightening controls on advanced technology access.
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