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Nvidia (NASDAQ:NVDA) isn't holding back. With the Biden administration poised to roll out stricter AI chip export rules before handing the reins to President-elect Donald Trump, Nvidia's leadership is calling foul. Vice President Ned Finkle slammed the proposed restrictions as a "disguised anti-China move" that would do more harm than goodcrippling the U.S. economy, alienating allies, and forcing global markets to pivot to alternative tech solutions. These last-minute policies are said to cap computing power exports on both a country and company basis, potentially stifling Nvidia's dominant AI accelerator business. CEO Jensen Huang, fresh off a CES keynote in Las Vegas, signaled a readiness to work with Trump's administration, saying, Less regulation means we can move fastand we need to move fast.
The stakes? Massive. Nvidia is riding a wave of unprecedented demand for its AI chips, which have cemented its status as the world's most valuable chipmaker. But this new export policy could throw a wrench in the works, limiting growth in key markets. Industry heavyweights like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META) have also voiced concerns, warning that restrictive measures would hand the competitive advantage to global rivals. Nvidia, meanwhile, has argued that the so-called country cap policy is a misguided overreach that risks disrupting data-center operations globally, from advanced AI research hubs to everyday cloud computing.
What's next? Investors should keep a close eye on Trump's next move. Huang's optimism about working with the new administration could signal a more industry-friendly environment ahead. Nvidia isn't just a semiconductor companyit's the AI powerhouse driving the next wave of tech innovation. Any signs of a lighter regulatory touch under Trump could supercharge its momentum. And with Nvidia at the forefront, the market is poised to accelerate.
This article first appeared on GuruFocus.