The stock market is in the red, with the tech-heavy Nasdaq plunging more than 1% on Monday morning as new regulatory measures introduced by President Biden have severely impacted artificial intelligence (AI) stocks. These changes have raised concerns among investors, leading to a sharp sell-off in AI-related companies.
The White House published a swath of new guidelines early Monday to curb the sale of AI chips from U.S. firms such as Nvidia to specific countries and companies. The administration said the rules would “strengthen U.S. security and economic strength.”
Ned Finkle, vice president of government affairs at Nvidia, called the policies “unprecedented and misguided.” In a company blog post, he slammed the outgoing administration for jeopardizing global progress on AI.
“In its last days in office, the Biden Administration seeks to undermine America’s leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review,” Finkle said. “This sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems and even software are designed and marketed globally.”
Shares of Nvidia (NVDA-2.69%) fell 3.7% on Monday as the Biden administration unveiled rules to regulate chip sales to foreign countries.
Several AI-related stocks were also down on the Nasdaq, including Super Micro Computer (SMCI-5.29%), Micron (MU-4.73%), and Palantir (PLTR-4.61%), with declines of 10%, 5.7%, and 4.3%, respectively.
Other tech stocks listed on the Nasdaq were also down Monday morning, with Apple (AAPL-1.30%), Meta (META-1.57%), and CrowdStrike Holdings (CRWD-2.78%) down by 2.2%, 1.8%, and 1.9%, respectively.
—Rocio Fabbro and Britney Nguyen contributed to this article.
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