Chips concept stocks decline before the market opens, ASML(ASML.US) drops 5%

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On Friday, chip-related stocks fell across the board before the market opened. ASML (ASML.US) dropped 5%, TSMC (TSM.US) and AMD (AMD.US) declined over 2%, Intel (INTC.US) fell 2%, and NVIDIA (NVDA.US) and Broadcom (AVGO.US) dropped nearly 2%. According to reports, the U.S. government is considering implementing new global AI chip export controls that require companies to obtain a license from the Department of Commerce before exporting AI-specific chips.

The new regulations will establish a tiered licensing system: shipments of 1,000 or fewer GPUs will only require preliminary review; medium-sized shipments will need pre-approval; and shipments exceeding 200,000 units will require certification from the importing country’s government and must meet security standards and commitments to U.S. AI investments. The regulatory plan has not yet been finalized, but if implemented, it could pose significant challenges to the AI business growth of companies like NVIDIA and AMD.

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