The incoming Trump may take a different approach to AI control, so the sell-off in chip stocks may be a temporary phenomenon.

Biden poured cold water on the "artificial intelligence market" (AI trade) of US stocks in the last week before leaving office.

In new regulations announced on Monday (January 13), the U.S. Department of Commerce set a cap on the quantity of advanced artificial intelligence chips exported to certain countries. , while imposing additional licensing requirements for the research and development of artificial intelligence technology.

U.S. Commerce Secretary Gina Raimondo said in a press release to the media: "This initiative will help Establish a reliable technology ecosystem to help the United States guard against security risks related to artificial intelligence while ensuring that regulatory measures do not stifle innovation or U.S. technological leadership. ”

Raimondo said that after the new restrictions are implemented, the United States' "adversaries" will not be able to obtain advanced artificial intelligence technology.

Compared with previously announced restrictions, the new regulations introduced on Monday have an important The difference is that the export restrictions, licensing approvals or upper limits for artificial intelligence chips have been expanded to more than 120 countries.

Investors reacted strongly to the latest news, with chip stocks generally falling on Monday. In midday trading on Monday, Nvidia (NVDA) fell 2.6%, the Philadelphia Semiconductor Index (SOX) fell 0.8%, and artificial intelligence server memory maker Micron Technology (MU) fell 4.6%.

However, since the incoming Trump may take a different approach on the issue of artificial intelligence control, the sell-off in chip stocks may be a temporary phenomenon.

Affected by the restrictive measures implemented at the end of 2023, investors' expectations for NVIDIA's business prospects in the market have declined. Since then, AI technology has improved, and measures implemented at the end of 2023 mean that Nvidia's long-term revenue from the market has been limited.

Nvidia said that Biden's new "unprecedented" plan will bring the United States' artificial intelligenceLeadership is pushed to the “dangerous edge.”

Ned Finkle, Nvidia's vice president of affairs, said in a statement: "In his final days in office, Biden Attempting to undermine U.S. leadership in artificial intelligence through a 200-plus-page regulatory document that was drafted in secret without proper legislative review would be a blow to America’s leading semiconductors, computers, systems and even software. exerting bureaucratic control over its design and global marketing.”

Nvidia believes that Biden has made it more difficult for companies in most regions and regions around the world to obtain Nvidia chips. This approach has opened the door to expanding market share in countries that are included in the restricted list in the United States. door. Critics believe that this project may eventually make China's artificial intelligence chips the standard for these countries, thereby solidifying the status of China's artificial intelligence chips.

The good news for Nvidia is that the new regulations will not take effect until a 120-day public comment period. Judging from his opposition to Biden’s previous artificial intelligence executive order and his opposition to cumbersome artificial intelligence regulations, Trump, who is about to take office, is likely to revoke or change this new regulation in advance.

In October 2023, Biden issued an executive order on artificial intelligence, citing the Defense Production Act, requiring companies to Report and send test results to the United States as more powerful versions of the artificial intelligence system are developed.

During the presidential campaign, Trump made the repeal of this artificial intelligence executive order one of his core principles. He said in his campaign platform: "Joe ·Biden’s executive order is very dangerous, and we will repeal this executive order that hinders artificial intelligence innovation.”

The Trump transition team did not immediately announce the latest announcement. Comment on artificial intelligence restrictions.

In order to make the AI ​​​​more in line with the goals of the new term, Trump may modify all artificial intelligence chips.

When Trump nominated Doug Burgum as Secretary of the Interior at the end of November last year, he said: "We will win matters that matter to American security. and prosperous battle for artificial intelligence superiority." He also said that the United States will lead artificial intelligence technology innovation by reducing regulations.

IfNvidia's business could get a boost as Trump loosens restrictions on artificial intelligence infrastructure and eases rules on the development of nuclear reactors, which are critical to providing enough energy for artificial intelligence projects over the next decade.