 "Nvidia Retail Investors Don’t See AI Chip Regulations As A Long-Term Threat")
synopsis
Nvidia’s criticism of Biden’s AI policies and its ties to global markets have placed the chipmaker’s stock at the center of investor debates this week.
Nvidia Corp. (NVDA) saw its stock edge 0.3% lower in after-market trading on Wednesday, following a 3.4% rise during regular trading hours.
The volatility comes amid investor concerns over the Biden administration’s recently announced framework to limit the export of advanced artificial intelligence (AI) technology, a measure largely aimed at restricting the sale of Nvidia’s AI chips to “countries of concern,” including China.
However, a recent Stocktwits poll revealed that retail investors aren’t very worried about the long-term impact of these restrictions.
Only 15% of respondents believe the restrictions pose a significant long-term threat to Nvidia’s market share, while 43% are more concerned about short-term performance disruptions.
The remaining investors cite political motivations (26%) and uncertainty surrounding the new U.S. administration (15%) as their primary concerns.
The White House characterized the rules as critical for national security, citing the risks of AI technologies being misused by adversaries. However, Nvidia has sharply criticized the move.
“These new rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” said Ned Finkle, Nvidia’s vice president of government affairs in statement.
He added that the regulations are an attempt “to rig market outcomes and stifle competition.”
Finkle also expressed optimism about a policy shift under President-elect Donald Trump, who Nvidia believes will promote policies to bolster U.S. innovation and competitiveness.
The potential restrictions could significantly impact Nvidia’s revenue, as China, Singapore, and Taiwan accounted for more than half of the company’s $35 billion revenue in the most recent quarter. China alone represented $5.4 billion of quarterly sales.
On Stocktwits, retail sentiment around Nvidia’s shares jumped to ‘bullish’ from ‘bearish’ a day ago, with message volume remaining at ‘high’ levels.
Some users cited Taiwan Semiconductor Manufacturing’s (TSM) better-than-expected earnings as evidence of strong demand for Nvidia’s new Blackwell chips.
Another retail investor projected Nvidia’s stock could rally to new highs this week.
A fellow retail watcher has put a $145 price target on the shares.
Nvidia’s stock has been in focus since Jan. 6, when the Biden administration first announced its export curbs. The stock rallied on Wednesday after five consecutive sessions of declines.
While Nvidia has more than doubled its value over the last year, with gains exceeding 140%, it is down 1.5% so far in 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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