Nvidia Slams Biden ‘Overreach’ And Praises Trump—As AI Stock Enters Correction Territory Nvidia blasted the Biden administration and hyped President-elect Donald Trump in a Monday press release reacting to more export restrictions targeting Nvidia’s highly sought-after artificial intelligence chips, a criticism coinciding with a rare down stretch on Wall Street for Nvidia—and mounting Silicon Valley support for Trump. President Joe Biden announced Monday a framework to govern the transfer of AI technology most famously designed by Nvidia to cap AI chip sales abroad at both the country and company levels, a move which the White House characterized as an effort to keep away the advanced AI systems out of the hands of “countries of concern” as Biden has voiced concern about China’s use of American-made AI throughout his presidency. The potential for limited exports poses a potential headache for Nvidia, as China, Singapore and Taiwan accounted for more than half of the company’s $35 billion in revenue during its most recent financial quarter, with China alone accounting for $5.4 billion of Nvidia’s quarterly sales. Nvidia lashed out against the rules in a strongly worded statement: “The new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” clapped back Ned Finkle, Nvidia’s vice president of government affairs, arguing it’s an attempt from the White House “to rig market outcomes and stifle competition.” The Nvidia response also indicated a warm attitude toward Trump, as Finkle wrote the “first Trump Administration laid the foundation” for the recent AI revolution. Nvidia looks “forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond,” Finkle added. Nvidia Stock Enters 10% Correction Shares of Nvidia fell as much as 4.7% to $129.51 shortly after market open, as pressure on its abroad business accelerated its recent stock market slump. The stock was down more than 15% from its all-time-high share price set last week, erasing as much as $578 billion in market capitalization from its $3.75 trillion valuation peak set Tuesday morning. Other big technology stocks struggled Monday, with shares of Alphabet, Apple and Tesla all declining at least 1% as the S&P 500 benchmark index sank to its lowest level since early November. Contra Much of Nvidia’s stock surge came while Biden was in office. The company’s share price is up 880% since Biden’s 2021 inauguration, compared to a 414% rally during Trump’s first term, according to FactSet data. Key Background Nvidia is far from the first big tech firm to express excitement about the prospects of Trump’s second term, with the likes of Amazon and Alphabet committing $1 million to Trump’s inauguration fund as industry leaders like Meta CEO Mark Zuckerberg, Apple CEO Tim Cook and Amazon chairman Jeff Bezos all met with Trump following his November election win. Zuckerberg also announced sweeping changes to Meta’s policies ahead of Trump’s inauguration: The company is ditching fact-checks in favor of X-style community notes, and Trump ally Dana White will join the board. Trump’s administration includes the newly-created role of “White House AI & Crypto Czar,” filled by Silicon Valley venture capitalist David Sacks, in an effort to make the U.S. “the clear global leader” in AI and cryptocurrency, Trump said in December. Nvidia is the face of the 2020s generative AI boom, as it designs a majority of the data-intensive hardware and software systems used to train AI technology like OpenAI’s ChatGPT chatbot and Tesla’s self-driving programs.
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Nvidia Slams Biden ‘Overreach’ And Praises Trump—As AI Stock Enters Correction Territory

Nvidia blasted the Biden administration and hyped President-elect Donald Trump in a Monday press release reacting to more export restrictions targeting Nvidia’s highly sought-after artificial intelligence chips, a criticism coinciding with a rare down stretch on Wall Street for Nvidia—and mounting Silicon Valley support for Trump.

President Joe Biden announced Monday a framework to govern the transfer of AI technology most famously designed by Nvidia to cap AI chip sales abroad at both the country and company levels, a move which the White House characterized as an effort to keep away the advanced AI systems out of the hands of “countries of concern” as Biden has voiced concern about China’s use of American-made AI throughout his presidency.

The potential for limited exports poses a potential headache for Nvidia, as China, Singapore and Taiwan accounted for more than half of the company’s $35 billion in revenue during its most recent financial quarter, with China alone accounting for $5.4 billion of Nvidia’s quarterly sales.

Nvidia lashed out against the rules in a strongly worded statement: “The new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” clapped back Ned Finkle, Nvidia’s vice president of government affairs, arguing it’s an attempt from the White House “to rig market outcomes and stifle competition.”

The Nvidia response also indicated a warm attitude toward Trump, as Finkle wrote the “first Trump Administration laid the foundation” for the recent AI revolution.

Nvidia looks “forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond,” Finkle added.

Nvidia Stock Enters 10% Correction

Shares of Nvidia fell as much as 4.7% to $129.51 shortly after market open, as pressure on its abroad business accelerated its recent stock market slump. The stock was down more than 15% from its all-time-high share price set last week, erasing as much as $578 billion in market capitalization from its $3.75 trillion valuation peak set Tuesday morning. Other big technology stocks struggled Monday, with shares of Alphabet, Apple and Tesla all declining at least 1% as the S&P 500 benchmark index sank to its lowest level since early November.

Contra

Much of Nvidia’s stock surge came while Biden was in office. The company’s share price is up 880% since Biden’s 2021 inauguration, compared to a 414% rally during Trump’s first term, according to FactSet data.

Key Background

Nvidia is far from the first big tech firm to express excitement about the prospects of Trump’s second term, with the likes of Amazon and Alphabet committing $1 million to Trump’s inauguration fund as industry leaders like Meta CEO Mark Zuckerberg, Apple CEO Tim Cook and Amazon chairman Jeff Bezos all met with Trump following his November election win. Zuckerberg also announced sweeping changes to Meta’s policies ahead of Trump’s inauguration: The company is ditching fact-checks in favor of X-style community notes, and Trump ally Dana White will join the board. Trump’s administration includes the newly-created role of “White House AI & Crypto Czar,” filled by Silicon Valley venture capitalist David Sacks, in an effort to make the U.S. “the clear global leader” in AI and cryptocurrency, Trump said in December. Nvidia is the face of the 2020s generative AI boom, as it designs a majority of the data-intensive hardware and software systems used to train AI technology like OpenAI’s ChatGPT chatbot and Tesla’s self-driving programs.