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“Biden's New Restrictions on Semiconductor Sales Hit China, Impacting Stock Prices” 🚨🚨🚨

Biden's New AI Chip Export Rules Hit Semiconductor Stocks Hard

The Biden administration's latest export control measures, known as the AI Diffusion rule, have severely impacted semiconductor stocks. These rules aim to prevent countries like China, labeled as "countries of concern," from obtaining advanced semiconductors that could be used to enhance AI systems.

Following the announcement, major players like Nvidia (NVDA $132.85, down 2.25%) and AMD (AMD $115.85, down 0.16%) saw significant declines in after-hours trading on January 8, with further drops of 3% and 4.8% respectively when markets resumed after a mourning day for former President Jimmy Carter. The sell-off intensified on Monday, with stocks including Taiwan Semiconductor (TSM $202.34, down 2.89%), Broadcom (AVGO $225.25, up 0.42%), Intel (INTC $18.83, down 1.67%), Qualcomm (QCOM $156.71, down 0.17%), and Micron (MU $94.49, down 4.88%) all dropping by at least 1%.

Nvidia's Vice President of Government Affairs, Ned Finkle, criticized the move, suggesting that the Biden administration's secretive and complex regulatory approach contrasts sharply with the more supportive environment for U.S. industry fostered by the Trump administration.

The ripple effects of these regulations have also hit the VanEck Semiconductor ETF (SMH $243.77, down 1.38%), which fell as much as 2.5% in premarket trading, approaching its 200-day moving average, a critical technical indicator for market analysts.