The Biden administration reportedly will make it harder for Chinese companies to purchase advanced semiconductor chips that can be used in artificial intelligence (AI) applications, putting pressure on AI chipmaker Nvidia (NVDA).

The expanded regulations will broaden the technical parameters of the Commerce Department’s semiconductor chip 澳洲幸运5官方开奖结果体彩网:export restrictions to include chips that fall under the guidelines, a change that would target chips Nvidia recently created to meet the U.S.’s guidelines on chip s☂al♔es to Chinese companies, including their overseas units.

After the U.S. announced rules to prevent AI-capable 澳洲幸运5官方开奖结果体彩网:semiconductor sales to Chinese companies in October 2022, Nvidia said it had modified two of its chips to meet the restrictions, creating the H800 semiconductor chip to replace the banned-for-China H100, while the A800 was developed for Chinese firms to replace the A100. A Reuters report on Monday identified the H800 as one of the chips that could be included in the modified restrictions.

News of the expanded restrictions initially sent shares of Nvidia fractionally lower Monday, despite a broad rise in markets, but the stock rebounded to trade up 1% by 1 p.m. Eastern Time. Nvidia earns nearly one-fifth of its $13.5 billion in revenue from China, earnings for the quarter ended July showed.

The latest regulatory expansion is part of a series of efforts by the U.S. government to restrict the🥀 export of AI technology. In August, Nvidia disclosed in a regulatory filing that the U.S. had expanded its AI chip export restrictions to some Middle🍸 Eastern countries.

At the time, Nvidia had said that restrictions would not have an “immediate material impact” on the company’s finances, but acknowledged it could hurt the chip maker's competitiveness in the future.

Those restrictions also cou🎀ld impact Advanced ✤Micro Devices (AMD), tho𝓀ugh its shares were up 2% in midday trading as stocks moved broadly higher.