Why Super Micro Computer Stock Is Sinking Today
Super Micro Computer (NASDAQ: SMCI) stock is falling in Monday's trading. The server specialist's share price was down 5.3% as of 12:45 p.m. ET and had been down as much as 11% earlier in the daily session. Meanwhile, the S 500 index was down 0.2%, and the Nasdaq Composite index was down 0.8%.
Supermicro stock is falling today in conjunction with news that the U.S. plans to roll out new restrictions on artificial intelligence (AI) chips. In order to bolster the competitive positioning of America and its allies in the tech category, the U.S. government has said it will put new regulations in place that limit AI chips being exported to countries including China, Russia, Iran, and North Korea.
White House officials announced today that the U.S. plans to expand restrictions to prevent advanced AI chips and semiconductor manufacturing equipment from being sold to China and other adversarial nations. Access to advanced artificial intelligence hardware and software has become a vital national security interest, and the U.S. is trying to strengthen its position in the space and limit advances for its geopolitical rivals.
Source Fool.com
