US Tightens Nvidia and AMD AI Chip Export Rules for Overseas Chinese Firms

In a move reflecting escalating technological tensions between Washington and Beijing, the U.S. Department of Commerce has acted to close a loophole that allowed the export of advanced AI chips to Chinese entities located outside of China. According to reports, the new restrictions cover Nvidia's sophisticated Rubin and Blackwell processors, as well as AMD's MI350x chips. This measure aims to prevent Chinese firms from bypassing direct export bans by sourcing high-end semiconductors through their international subsidiaries or branches.

These restrictions arrive at a sensitive time for the semiconductor sector, as companies face mounting geopolitical pressures affecting global supply chains. Per market data, such measures could pressure profit margins in the data center segment, which relies heavily on international demand. Historically, tightening export controls is often followed by volatility in major chip stocks, especially as Foreign Direct Investment (FDI) in China dropped by 10.3% as of May 25, 2026.

Investors are monitoring price levels for the impacted instruments, with NVDA closing at $1,096.33 and AMD at $166.90 (close May 30, 2026). Looking ahead, market participants will focus on the U.S. GDP growth rate data scheduled for release on May 28, 2026, for signals on economic resilience. Additionally, ECB President Lagarde’s speech on the same day will be watched to assess the broader global implications of these trade restrictions.