Biden's Export Restrictions: Boosting U.S.-Made AI Chips?

Biden's Export Restrictions: Boosting U.S.-Made AI Chips?

Will restrictions compel $NVDA to cease outsourcing production? How will this impact the Chip players in the stock market? This is of utmost significance and holds the potential to influence the long-term prospects of the company. While I would have been less hesitant if Biden spoke these words for the first time, the fact that this is the second instance offers some uncertainty on how investors, the market, and the Chipmaking companies like $NVDA, $AMD, and $MU will respond.

$NVDA is trading at record-breaking highs, approximately $418 per share.

Do you believe Biden and the U.S.?

Calling Biden’s Bluff

Approximately nine months ago, Biden initially announced his intention to impose restrictions on Artificial Intelligence chips, and he reaffirmed this objective yesterday following the market's close. As a result of this news, leading chip makers, like $NVDA, $AMD, and $MU, experienced a decline of up to 4% overnight. If you didn’t know, it’s worth noting that $NVDA outsources its production to Taiwan Semiconductor Manufacturing, which means these restrictions could significantly impact their productivity.

Should you be worried?

Well, if you don’t understand that the world revolves around change, cycles, and finding value in between the chaos, then sure. Otherwise, I see one or two scenarios occurring.

1. The dip is bought, no one believes Biden, and we continue on this 2021-isk recovery path a little longer.

2. Though nothing has been finalized, the market overreacts, and $NVDA’s money flows into other tech stocks. At this point, $NVDA will find its value at a lower price which will be appealing for those who believe $NVDA is a competent enough company to figure things out regardless of the situation.

Do I believe in Biden?

It doesn’t matter If I do, but if you look at the facts, no president could achieve every goal listed during their presidential statement.

A few unfinished things during Biden’s term.

• Student loan debt (Still unpaid though the house has stated he has the power)

• Immigration issues

• Wages are not increasing in many non-tech jobs though inflation is high.

Now I don’t want to sound like a Biden hater, as he has kept the economy and financial markets stable as many retail traders thought the market would be making new lows in June.

Restrictions like this can benefit America, but this is not an overnight fix. It takes time to put plans into action and the U.S. government unless an emergency does not move fast enough to leave $NVDA high and dry.

If the restriction bill passes, $NVDA will find value and be back at the highs for investors to cheer when creating their chips in the U.S. It’s all about your timeframe. Changes can occur in many months or many years.

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