Nvidia and AMD Stocks Drop after Report of New U.S. Rules Requiring Approval for AI Chip Exports

FomoAnxiety · 2026-03-05T21:37:45+00:00

Nvidia and AMD shares fell over 2% and 3% as concerns grew over new U.S. export regulations for AI chips, which may complicate approvals and delay global projects. The draft rules would create stricter oversight of advanced AI chip exports while not banning them outright.

FomoAnxiety

2026-03-05 21:37:45

Abstract generation in progress

Nvidia NVDA -1.28% ▼ and Advanced Micro Devices AMD -2.73% ▼ slipped over 2% and 3%, respectively, on Thursday after Bloomberg reported that the U.S. government is drafting new rules that would require companies to seek approval for all AI chip exports worldwide. The draft regulations would extend U.S. oversight far beyond current restrictions, which today apply to roughly 40 countries.

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The decline came due to investor worries that the new rules could slow or complicate AI‑chip exports. The restrictions could result in longer or less predictable approval timelines, higher compliance costs, and possible delays in global data center projects.

The pressure on the stocks also followed earlier reports that the U.S. may impose per‑customer limits on Nvidia’s H200 shipments to China, adding another layer of uncertainty to the company’s efforts to reenter that market.

What the Draft Rules Would Do

The proposed framework would position the U.S. government as a “gatekeeper” for advanced AI chips, including Nvidia’s GB300 and AMD’s MI‑series chips.

The complexity of the approval process would depend on the size of the computing cluster a customer wants to build. Small clusters of up to 1,000 GPUs would face a lighter review, whereas massive deployments of over 200,000 GPUs would require host-government involvement and strict security commitments to the U.S.

Also, companies might have to disclose business models or allow site visits from U.S. officials to ensure compliance.

Officials emphasized that the rules are not intended as a ban on Nvidia or AMD exports, but rather a mechanism to control how and where the world’s most powerful AI systems are built. It is worth noting that the regulations are still in draft form, and the final version could change significantly.

Which Stock Is Better, AMD or Nvidia?

We used TipRanks’ Comparison Tool to see which stock analysts favor. According to analysts, Nvidia stock has a Strong Buy consensus rating and the highest upside potential of 50.78%.

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