Nvidia (NVDA) has criticized a planned move by the outgoing Joe Biden administration to impose new restrictions on chip exports.
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First reported by Bloomberg, it’s believed the White House is planning one last semiconductor chip curb on NVDA before the new Trump administration is installed.
“We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the U.S. economy, set America back, and play into the hands of U.S. adversaries,” Nvidia Vice President Ned Finkle said in an emailed statement sent to Bloomberg.
NVDA stock fell more than 1% in pre-market trading ahead of the market’s reopening on Friday, January 10. Shares of AMD (AMD), which would also be affected by the move, fell 2%.
New Curbs Would Hit NVDA
Coming as early as Friday, the expected curbs could be placed in a layered manner, with three levels of chip trade restrictions.
But Finkle warned that the last-minute policy move would be criticized by U.S. industry and the world, saying that AI computing is mainstream and as essential as electricity.
Describing it as a “disguised” anti-China tactic, he also said it was pointless for the White House to seek to control everyday data center technology as it is already in gaming PCs worldwide.
NVDA Hits Back at “Extreme” Move
The layered approach would place countries into three categories, with a limited number of U.S. allies in the first group with unlimited access to U.S. technology. The second would include U.S. adversaries who could not import any chips. The third, and perhaps most important, is a majority of countries from the Middle East and Asia who would face a limit on the total amount of computing power they could import.
Finkle hit back at the third category, describing the “extreme” country cap policy as one that would affect mainstream computers in countries around the world and do nothing to promote national security. It could even push countries to seek alternative technology.
Could NVDA Top $1,000 a Share in 2026?
Overall, Wall Street has a Strong Buy consensus rating on NVDA stock, based on 37 Buys, three Holds and zero Sells. The average NVDA price target of $178.16 implies about 27.2% upside potential from current levels. Shares of NVDA have increased by 163% in the last 12 months.
