Why Nvidia, AMD And Other Chipmakers Are Moving Lower In Tuesday's Premarket

Nvidia Corp. (NASDAQ:NVDA) is leading the weakness in the chip space in premarket trading on Tuesday, with potential ramifications of the U.S.-China standoff triggering the slide.

The Biden administration has discussed curbing sales of advanced AI chips from Nvidia Corp. (NASDAQ:NVDA) and other U.S. chipmakers on a country-specific basis, Bloomberg reported, citing people familiar with the matter. Such an export curb is already in place in China and a few other countries.

The report said, the U.S. is considering a ceiling on export licenses for countries in the interest of national security, with a particular focus on Persian Gulf nations, which have been building AI infrastructure rampantly using their deep pockets in a bid to assert their computational sovereignty.

In May when rumors were adrift about a potential pact between the U.S. and Saudi Arabia that would offer the latter security guarantees and lay out a possible pathway to diplomatic ties with Israel, Lumida Wealth’s Ram Ahluwalia said, “Semiconductors are the New Oil.”

“Remember, Saudi is building 60 data centers and diverting investment from ‘The Linear City,” he said then.

According to Benzinga Pro data:

• Nvidia was down 0.57% to $137.28.
• Advanced Micro Devices, Inc. (NASDAQ:AMD) slipped 1.03% to $163.56.
• Micron Technology, Inc. (MU) moved down 0.61% to $107.68.
• Arm Holdings plc (NASDAQ:ARM) slipped 1% to $160.20.
• ASML Holding N.V. (NASDAQ:ASML) declined 1.30% to $860.84.

See Also: Best Semiconductor Stocks

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