Nvidia Shares Fall on New AI Chip Export Rules. Is This a Golden Opportunity to Buy the Stock?

Core Viewpoint - Nvidia's shares are under pressure due to new U.S. export restrictions on AI chips, which could limit sales in certain countries [1][3] Group 1: Export Restrictions - The Biden administration's new guidelines impose limits on the export of advanced AI chips, affecting 24 countries outright and requiring licenses for others [2][4] - 18 countries face no restrictions, allowing Nvidia to continue sales in major markets [2][5] Group 2: Impact on Nvidia - Nvidia criticized the export rules, claiming they could weaken U.S. competitiveness and innovation [3][4] - The company relies heavily on large hyperscaler customers, which may mitigate the impact of these restrictions [8][9] Group 3: Revenue Breakdown - In fiscal 2024, 45% of Nvidia's revenue came from the U.S., 17% from Taiwan, and nearly 13% from China, where advanced chip sales are already restricted [7] - The top three customers accounted for about 34% of Nvidia's revenue, indicating a strong reliance on major cloud computing companies [8] Group 4: Future Outlook - Despite potential risks from export curbs, Nvidia's valuation remains attractive, with a forward P/E ratio below 30 and a PEG ratio below 1, suggesting it may be undervalued [12][13] - Countries needing more chips may partner with U.S. tech companies to meet their AI needs, allowing continued growth in AI data centers [10][11]