Nvidia Stock Drops After New Rules Restrict AI Chip Exports to China

Nvidia stock fell nearly 5% on Tuesday after the Biden administration announced new restrictions on exporting AI chips to China.

Analysts believe the new rules will make it difficult for Nvidia to sell to China, prompting analysts to lower sales estimates.

Nvidia said the new rules could impact its ability to support existing customers and develop new products for China.

The company noted there is no guarantee it will get licenses approved to sell to China under the new rules.

Nvidia stock is down about 12% from its 52-week high in August, before the new export rules were announced.