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The stock market is in the red, with The tech-heavy Nasdaq plunges more than 1% Monday morning as New regulatory measures introduced by President Biden have severely impacted artificial intelligence (AI) stocks. These changes have sparked concerns among investors, leading to a sharp sell-off in AI-related companies.
The White House released a a series of new guidelines early Monday at curb the sale of AI chips from US companies such as Nvidia to specific countries and companies. The administration said the rules would “enhance the security and economic strength of the United States.”
Ned Finkle, vice president of government affairs at Nvidia, called the policies “unprecedented and misguided.” In a business blog posthe criticized the outgoing administration for jeopardizing global progress in AI.
“In its final days in office, the Biden administration seeks to undermine American leadership with a regulatory quagmire of more than 200 pages, drafted in secret and without proper legislative review,” Finkle said. “This overreach would impose bureaucratic control over how major U.S. semiconductors, computers, systems and even software are designed and marketed globally.”
Nvidia and other tech stocks fall on new AI rules
Nvidia shares (NVDA-3.16%) fell 3.7% on Monday as the The Biden administration has unveiled rules to regulate overseas chip sales.
Several AI-related stocks were also down on the Nasdaq, including Super Micro Computer (SMCI-7.39%), microns (UM-5.07%), and Palantir (PLTR-4.03%), with respective drops of 10%, 5.7% and 4.3%.
Other tech stocks listed on the Nasdaq were also down Monday morning, with Apple (AAPL-2.27%), Meta (META-2.30%), and CrowdStrike Holdings (CRWD-3.48%) down 2.2%, 1.8% and 1.9% respectively.
—Rocio Fabbro and Britney Nguyen contributed to this article.
