Shares of Super Micro Computer Inc (SMCI) slumped over 5% in pre-market trading on Monday, as the tech sector grappled with the implications of new sweeping restrictions announced by the White House on the export of advanced artificial intelligence (AI) chips.
The Biden administration unveiled limits on the sale of cutting-edge AI chips developed by companies like Nvidia Corp and others to most countries around the world. The rules, set to take effect in one year, will cap the amount of computing power that can be exported.
While businesses will have a way to bypass national limits by agreeing to certain security and human rights standards, the new curbs have raised concerns about the potential impact on the semiconductor industry's revenue and growth prospects. Companies like Super Micro that supply AI servers and systems could be significantly affected by the restrictions on selling their advanced products overseas.
