Nvidia Stock Falls Pre-Market After Reports of US Tightening Trade Controls And Intensifying Lobbying Efforts — Retail Remains Cautiously Optimistic

Nvidia (NVDA) shares dipped 0.6% in pre-market trade on Tuesday following a Bloomberg report that the company, alongside other tech giants and senior foreign officials, is pressing the Trump administration to reconsider sweeping AI export restrictions set to take effect within two months.

A separate report from the Financial Times revealed that Malaysia, a key hub for AI hardware, plans to increase oversight of Nvidia chip shipments after U.S. officials pushed for stricter monitoring of semiconductors that could be rerouted to China.

This comes after Singapore investigated claims that banned Nvidia chips were illegally sent to China. Three men have been charged with fraud for allegedly deceiving Dell and Super Micro about where AI-powered servers were headed.

Malaysia said it hasn’t found similar violations but is working with U.S. and Singaporean authorities to enforce trade rules.

Meanwhile, the Biden-era AI diffusion rule, which limits the number of AI processors that can be shipped to most countries, has triggered backlash from U.S. allies and private-sector companies, including Nvidia. 

For Nvidia, the tightening rules – at home and overseas – present a business risk. The company dominates the AI chip market, and curbs on exports threaten to push customers toward alternative suppliers. 

According to Bloomberg, Nvidia, Oracle, and other industry leaders have been lobbying the Trump administration to roll back the AI diffusion rule entirely. 

They have reportedly argued that overly strict controls could backfire by accelerating foreign competition in AI hardware.

However, the report also said the Trump administration remains divided on whether to soften the rules or maintain a hard line. 

Nvidia, which recently joined the Information Technology Industry Council (ITI) — a trade group representing major tech firms — has advocated for a full repeal of the rule.

Speaking last week at GTC 2025, Nvidia CEO Jensen Huang reiterated the company’s position. “We should continue to interact with the government so that whatever policy they believe is best is informed,” he said.

Nvidia retail sentiment and message volume on March 25 as of 7:50 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Nvidia’s stock deteriorated but remained in ‘bullish’ territory as chatter levels also declined. 

One user on the platform suggested that some large traders, or "whales," may be positioning for a potential drop toward $115 this week.

https://stocktwits.com/SpudZone/message/609126477

Another speculated that the primary reason whales bet against the stock is President Donald Trump’s reluctance to roll back chip export restrictions.

https://stocktwits.com/t_sch/message/609121534

While Nvidia’s stock has gained 29% over the past 12 months, it has tumbled by over 10% in 2025.

The stock has been trading under its 200-day simple moving average since Feb. 27.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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