News of a Possible AI Chip Cap, ASML Sales Warning Hit Nvidia and Other Semi Stocks [Video]

Nvidia (NVDA) shares fell from yesterday’s all-time closing high, and shares of other chipmakers declined, following indications the Biden administration is considering limiting the export of artificial intelligence chips to some countries in the Middle East.

Bloomberg reported that White House officials have discussed putting a cap on export licenses to certain nations because of national security concerns. The focus was on Persian Gulf countries that have a growing interest in AI and the funding to purchase those technologies, the report said, adding that the discussions are in the early stages.

Also weighing on semiconductor stocks was a warning from chipmaker equipment ASML Holding (ASML), which released its third quarter earnings a day earlier than expected.

“While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover,” said CEO Christophe Fouquet. “It now appears the recovery is more gradual than previously expected.” 

ASML predicted …